HomeMy WebLinkAboutB-06 - FPPC Reference Pamphlet 2017-2018 Form 700December 2017
2017/2018
Form 700
Statement of
Economic Interests
Reference
Pamphlet
California Fair Political Practices Commission
Email Advice: advice@fppc.ca.gov
Toll-free advice line: 1 (866) ASK-FPPC • (866) 275-3772
Telephone: (916) 322-5660 • Website: www.fppc.ca.gov
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 2
• Who Must File ............................................................................................Page 3
• Types of Form 700 Filings ..........................................................................Page 4
• Where to File ..............................................................................................Page 5
• When to File ...............................................................................................Page 7
• Terms & Definitions ....................................................................................Page 8
Contents
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 3
Who Must File
1. Officials and Candidates Specified in Gov.
Code Section 87200 and Members of Boards and
Commissions of Newly Created Agencies
The Act requires the following individuals to fully disclose
their personal assets and income described in Form 700,
Statement of Economic Interests:
State Offices
• Governor
• Lieutenant Governor
• Attorney General
• Controller
• Insurance Commissioner
• Secretary of State
• Treasurer
• Members of the State Legislature
• Superintendent of Public Instruction
• State Board of Equalization Members
• Public Utilities Commissioners
• State Energy Resources Conservation and
Development Commissioners
• State Coastal Commissioners
• Fair Political Practices Commissioners
• State public officials (including employees and
consultants) who manage public investments
• Elected members of and candidates for the Board of
Administration of the California Public Employees’
Retirement System
• Elected members of and candidates for the Teachers’
Retirement Board
• Members of the High Speed Rail Authority
Other officials and employees of state boards,
commissions, agencies, and departments file Form 700 as
described in Part 2 on this page.
Judicial Offices
• Supreme, Appellate, and Superior Court Judges
• Court Commissioners
• Retired Judges, Pro-Tem Judges, and part-time Court
Commissioners who serve or expect to serve 30 days
or more in a calendar year
County and City Offices
• Members of Boards of Supervisors
• Mayors and Members of City Councils
• Chief Administrative Officers
• District Attorneys
• County Counsels
• City Attorneys
• City Managers
• Planning Commissioners
• County and City Treasurers
• County and city public officials (including employees
and consultants) who manage public investments
Members of Boards and Commissions of Newly Created
Agencies
Members must fully disclose their investments, interests
in real property, business positions, and income (including
loans, gifts, and travel payments) until the positions are
covered under a conflict of interest code.
2. State and Local Officials, Employees, Candidates,
and Consultants Designated in a Conflict of Interest
Code (“Code Filers”)
The Act requires every state and local government agency
to adopt a unique conflict of interest code. The code lists
each position within the agency filled by individuals who
make or participate in making governmental decisions that
could affect their personal economic interests.
The code requires individuals holding those positions
to periodically file Form 700 disclosing certain personal
economic interests as determined by the code’s “disclosure
categories.” These individuals are called “designated
employees” or “code filers.”
Obtain your disclosure categories from your agency – they
are not contained in the Form 700. Persons with broad
decisionmaking authority must disclose more interests than
those in positions with limited discretion. For example, you
may be required to disclose only investments and business
positions in or income (including loans, gifts, and travel
payments) from businesses of the type that contract with
your agency, or you may not be required to disclose real
property interests.
In addition, certain consultants to public agencies may
qualify as public officials because they make, participate
in making, or act in a staff capacity for governmental
decisions. Agencies determine who is a consultant and the
level of disclosure and may use Form 805.
Note: An official who holds a position specified in Gov.
Code Section 87200 is not required to file statements
under the conflict of interest code of any agency that
has the same or a smaller jurisdiction (for example, a
state legislator who also sits on a state or local board or
commission).
Employees in Newly Created Positions of Existing
Agencies
An individual hired for a position not yet covered under an
agency’s conflict of interest code must file Form 700 if the
individual serves in a position that makes or participates in
making governmental decisions. These individuals must
file under the agency’s broadest disclosure category until
the code is amended to include the new position unless
the agency has provided in writing a limited disclosure
requirement. The Form 804 may be used to satisfy this
requirement.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 4
Types of Form 700 Filings
Assuming Office Statement:
If you are a newly appointed official or are newly employed
in a position designated, or that will be designated, in
a state or local agency’s conflict of interest code, your
assuming office date is the date you were sworn in or
otherwise authorized to serve in the position. If you are a
newly elected official, your assuming office date is the date
you were sworn in.
• Investments, interests in real property, and business
positions held on the date you assumed the office
or position must be reported. In addition, income
(including loans, gifts, and travel payments) received
during the 12 months prior to the date you assumed the
office or position is reportable.
For positions subject to confirmation by the State Senate
or the Commission on Judicial Performance, your
assuming office date is the date you were appointed or
nominated to the position.
Example:
Maria Lopez was nominated by the Governor to serve
on a state agency board that is subject to state Senate
confirmation. The assuming office date is the date Maria’s
nomination is submitted to the Senate. Maria must report
investments, interests in real property, and business
positions she holds on that date, and income (including
loans, gifts, and travel payments) received during the 12
months prior to that date.
If your office or position has been added to a newly
adopted or newly amended conflict of interest code, use
the effective date of the code or amendment, whichever is
applicable.
• Investments, interests in real property, and business
positions held on the effective date of the code or
amendment must be reported. In addition, income
(including loans, gifts, and travel payments) received
during the 12 months prior to the effective date of the
code or amendment is reportable.
Annual Statement:
Generally, the period covered is January 1, 2017,
through December 31, 2017. If the period covered by
the statement is different than January 1, 2017, through
December 31, 2017, (for example, you assumed office
between October 1, 2016, and December 31, 2016, or you
are combining statements), you must specify the period
covered.
• Investments, interests in real property, business
positions held, and income (including loans, gifts, and
travel payments) received during the period covered
by the statement must be reported. Do not change the
preprinted dates on Schedules A-1, A-2, and B unless
you are required to report the acquisition or disposition
of an interest that did not occur in 2017.
• If your disclosure category changes during a
reporting period, disclose under the old category
until the effective date of the conflict of interest code
amendment and disclose under the new disclosure
category through the end of the reporting period.
Leaving Office Statement:
Generally, the period covered is January 1, 2017,
through the date you stopped performing the duties of
your position. If the period covered differs from January
1, 2017, through the date you stopped performing the
duties of your position (for example, you assumed office
between October 1, 2016, and December 31, 2016, or
you are combining statements), the period covered must
be specified. The reporting period can cover parts of two
calendar years.
• Investments, interests in real property, business
positions held, and income (including loans, gifts, and
travel payments) received during the period covered
by the statement must be reported. Do not change the
preprinted dates on Schedules A-1, A-2, and B unless
you are required to report the acquisition or disposition
of an interest that did not occur in 2017.
Candidate Statement:
If you are filing a statement in connection with your
candidacy for state or local office, investments, interests
in real property, and business positions held on the date
of filing your declaration of candidacy must be reported.
In addition, income (including loans, gifts, and travel
payments) received during the 12 months prior to the date
of filing your declaration of candidacy is reportable. Do not
change the preprinted dates on Schedules A-1, A-2, and B.
Candidates running for local elective offices (e.g., county
sheriffs, city clerks, school board trustees, or water
district board members) must file candidate statements,
as required by the conflict of interest code for the elected
position. The code may be obtained from the agency of
the elected position.
Amendments:
If you discover errors or omissions on any statement, file
an amendment as soon as possible. You are only required
to amend the schedule that needs to be revised; it is not
necessary to refile the entire form. Obtain amendment
schedules from the FPPC website at www.fppc.ca.gov.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 5
Where to File
1. Officials Specified in Gov. Code Section 87200
(See Reference Pamphlet, page 3):
In most cases, the filing officials listed below will retain
a copy of your statement and forward the original to the
FPPC.
Filers Where to File
87200 Filers
State offices
Judicial offices
Retired Judges
County offices
City offices
Multi-County offices
Your agency
The clerk of your court
Directly with FPPC
Your county filing official
Your city clerk
Your agency
87200 Candidates
State offices
Judicial offices
Multi-County offices
County offices
City offices
Public Employees’
Retirement System
(CalPERS)
State Teachers’
Retirement Board
(CalSTRS)
County elections official with
whom you file your declaration
of candidacy
County elections official
City Clerk
CalPERS
CalSTRS
Note: Individuals that invest public funds for a city or
county agency must file Form 700 with the agency. Unlike
most other 87200 filers, the original statement will not be
forwarded to the FPPC pursuant to Regulation 18753.
2. Code Filers — State and Local Officials,
Employees, Candidates, and Consultants Designated
in a Conflict of interest Code:
File with your agency, board, or commission unless
otherwise specified in your agency’s conflict of interest
code. In most cases, the agency, board, or commission
will retain the statements.
Candidates for local elective offices designated in a conflict
of interest code file with the elections office where the
declaration of candidacy or other nomination documents
are filed.
3. Members of Boards and Commissions of Newly
Created Agencies:
File with your newly created agency or with your agency’s
code reviewing body as provided by your code reviewing
body.
State Senate and Assembly staff members file statements
directly with the FPPC.
Exceptions:
• Elected state officers are not required to file statements
under any agency’s conflict of interest code.
• Filers listed in Section 87200 are not required to file
statements under any agency’s conflict of interest
code in the same jurisdiction. For example, a county
supervisor who is appointed to serve in an agency with
jurisdiction in the same county has no additional filing
obligations.
4. Positions Not Yet Covered Under a Conflict of
interest Code
An individual hired for a position not yet covered under an
agency’s conflict of interest code must file Form 700 if the
individual serves in a position that makes or participates in
making governmental decisions. These individuals must
file under the broadest disclosure category until the code
is amended to include the new position unless the agency
has provided in writing a limited disclosure requirement.
Agencies may use FPPC Form 804 for this disclosure.
Such individuals are referred to as “code filers.” See
Regulation 18734.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 6
When to File
Assuming Office Statements:
Filer Deadline
Elected officials 30 days after assuming office
Appointed positions specified
in Gov. Code Section 87200
or
Newly created board and
commission members not
covered by a conflict of
interest code
30 days after assuming office
or
10 days after appointment
or nomination if subject
to Senate or judicial
confirmation
Other appointed positions
(including those held by newly-
hired employees) that are or
will be designated in a conflict
of interest code
30 days after assuming office
(30 days after appointment or
nomination if subject to Senate
confirmation)
Positions newly added to a
new or amended conflict of
interest code
30 days after the effective
date of the code or code
amendment
Exceptions:
• Elected state officers who assume office in December
or January are not required to file an assuming office
statement, but will file the next annual statement due.
• If you complete a term of office and, within 30 days,
begin a new term of the same office (for example, you
are reelected or reappointed), you are not required to
file an assuming office statement. Instead, you will
simply file the next annual statement due.
• If you leave an office specified in Gov. Code Section
87200 and, within 45 days, you assume another
office or position specified in Section 87200 that has
the same jurisdiction (for example, a city planning
commissioner elected as mayor), you are not required
to file an assuming office statement. Instead, you will
simply file the next annual statement due.
• If you transfer from one designated position to another
designated position within the same agency, contact
your filing officer or the FPPC to determine your filing
obligations.
Annual Statements:
1. Elected state officers (including members of the
state legislature, members elected to the Board of
Administration of the California Public Employees’
Retirement System and members elected to the
Teachers’ Retirement Board);
Judges and court commissioners; and
Members of state boards and commissions specified in
Gov. Code Section 87200:
File no later than Thursday, March 1, 2018.
2. County and city officials specified in Gov. Code Section
87200:
File no later than Monday, April 2, 2018.
3. Multi-County officials:
File no later than Monday, April 2, 2018.
4. State and local officials and employees designated in a
conflict of interest code:
File on the date prescribed in the code (April 1 for most
filers).
Exception:
If you assumed office between October 1, 2017, and
December 31, 2017, and filed an assuming office
statement, you are not required to file an annual statement
until March 1, 2019, or April 1, 2019, whichever is
applicable. The annual statement will cover the day after
you assumed office through December 31, 2018.
Incumbent officeholders who file candidate statements
also must file annual statements by the specified
deadlines.
Late statements are subject to a late fine of
$10 per day per position up to $100 for each
day the statement is late.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 7
When to File - (continued)
Leaving Office Statements:
Leaving office statements must be filed no later than 30
days after leaving the office or position.
Exceptions:
• If you complete a term of office and, within 30 days,
begin a new term of the same office (for example, you
are reelected or reappointed), you are not required to
file a leaving office statement. Instead, you will simply
file the next annual statement due.
• If you leave an office specified in Gov. Code Section
87200 and, within 45 days, you assume another office
or position specified in Section 87200 that has the same
jurisdiction (for example, a city planning commissioner
elected as mayor), you are not required to file a leaving
office statement. Instead, you will simply file the next
annual statement due.
• If you transfer from one designated position to another
designated position within the same agency, contact
your filing officer or the FPPC to determine your filing
obligations.
Candidate Statements:
All candidates (including incumbents) for offices specified
in Gov. Code Section 87200 must file statements no later
than the final filing date for their declaration of candidacy.
Candidates seeking a position designated in a conflict of
interest code must file no later than the final filing date
for the declaration of candidacy or other nomination
documents.
Exception:
A candidate statement is not required if you filed any
statement (other than a leaving office statement) for the
same jurisdiction within 60 days before filing a declaration
of candidacy or other nomination documents.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 8
Terms & Definitions
The instructions located on the back of each schedule
describe the types of interests that must be reported. The
purpose of this section is to explain other terms used in
Form 700 that are not defined in the instructions to the
schedules or elsewhere.
Blind Trust: See Trusts, Reference Pamphlet, page 16.
Business Entity: Any organization or enterprise operated
for profit, including a proprietorship, partnership, firm,
business trust, joint venture, syndicate, corporation, or
association. This would include a business for which you
take business deductions for tax purposes (for example, a
small business operated in your home).
Code Filer: An individual who has been designated in
a state or local agency’s conflict of interest code to file
statements of economic interests.
An individual hired on or after January 1, 2010 for a
position not yet covered under an agency’s conflict of
interest code must file Form 700 if the individual serves
in a position that makes or participates in making
governmental decisions. These individuals must file under
the broadest disclosure category until the code is amended
to include the new position unless the agency has provided
in writing a limited disclosure requirement. Agencies may
use FPPC Form 804 for such disclosure. See Regulation
18734.
Commission Income: “Commission income” means
gross payments of $500 or more received during the
period covered by the statement as a broker, agent, or
salesperson, including insurance brokers or agents, real
estate brokers or agents, travel agents or salespersons,
stockbrokers, and retail or wholesale salespersons, among
others.
In addition, you may be required to disclose the names of
sources of commission income if your pro rata share of the
gross income was $10,000 or more from a single source
during the reporting period. If your spouse or registered
domestic partner received commission income, you would
disclose your community property share (50%) of that
income (that is, the names of sources of $20,000 or more
in gross commission income received by your spouse or
registered domestic partner).
Report commission income as follows:
• If the income was received through a business entity
in which you and your spouse or registered domestic
partner had a 10% or greater ownership interest (or if
you receive commission income on a regular basis as
an independent contractor or agent), use Schedule A-2.
• If the income was received through a business entity
in which you or your spouse or registered domestic
partner did not receive commission income on a
regular basis or you had a less than 10% ownership
interest, use Schedule C.
The “source” of commission income generally includes all
parties to a transaction, and each is attributed the full value
of the commission.
Examples:
• You are a partner in Smith and Jones Insurance
Company and have a 50% ownership interest in the
company. You sold two Businessmen’s Insurance
Company policies to XYZ Company during the reporting
period. You received commission income of $5,000
from the first transaction and $6,000 from the second.
On Schedule A-2, report your partnership interest in
and income received from Smith and Jones Insurance
Company in Parts 1 and 2. In Part 3, list both
Businessmen’s Insurance Company and XYZ Company
as sources of $10,000 or more in commission income.
• You are a stockbroker for Prince Investments, but you
have no ownership interest in the firm. You receive
commission income on a regular basis through the
sale of stock to clients. Your total gross income from
your employment with Prince Investments was over
$100,000 during the reporting period. On Schedule
A-2, report your name as the name of the business
entity in Part 1 and the gross income you have
received in Part 2. (Because you are an employee of
Prince Investments, you do not need to complete the
information in the box in Part 1 indicating the general
description of business activity, fair market value, or
nature of investment.) In Part 3, list Prince Investments
and the names of any clients who were sources of
$10,000 or more in commission income to you.
• You are a real estate agent and an independent
contractor under Super Realty. On Schedule A-2,
Part 1, in addition to your name or business name,
complete the business entity description box. In
Part 2, identify your gross income. In Part 3, for each
transaction that resulted in commission income to you
of $10,000 or more, you must identify the brokerage
entity, each person you represented, and any person
who received a finder’s or other referral fee for
referring a party to the transaction to the broker.
Note: If your pro rata share of commission income from
a single source is $500 or more, you may be required to
disqualify yourself from decisions affecting that source of
income, even though you are not required to report the
income. For information regarding disclosure of “incentive
compensation,” see Reference Pamphlet, page 12.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 9
Terms & Definitions - (continued)
Conflict of Interest: A public official or employee has a
conflict of interest under the Act when all of the following
occur:
• The official makes, participates in making, or uses
his or her official position to influence a governmental
decision;
• It is reasonably foreseeable that the decision will affect
the official’s economic interest;
• The effect of the decision on the official’s economic
interest will be material; and
• The effect of the decision on the official’s economic
interest will be different than its effect on the public
generally.
Conflict of Interest Code: The Act requires every state
and local government agency to adopt a conflict of interest
code. The code may be contained in a regulation, policy
statement, or a city or county ordinance, resolution, or
other document.
An agency’s conflict of interest code must designate all
officials and employees of, and consultants to, the agency
who make or participate in making governmental decisions
that could cause conflicts of interest. These individuals
are required by the code to file statements of economic
interests and to disqualify themselves when conflicts of
interest occur.
The disclosure required under a conflict of interest code for
a particular designated official or employee should include
only the kinds of personal economic interests he or she
could significantly affect through the exercise of his or her
official duties. For example, an employee whose duties
are limited to reviewing contracts for supplies, equipment,
materials, or services provided to the agency should be
required to report only those interests he or she holds
that are likely to be affected by the agency’s contracts for
supplies, equipment, materials, or services.
Consultant: An individual who contracts with or whose
employer contracts with state or local government
agencies and who makes, participates in making, or acts
in a staff capacity for making governmental decisions. The
agency determines who is a consultant. Consultants may
be required to file Form 700. Such consultants would file
under full disclosure unless the agency provides in writing
a limited disclosure requirement. Agencies may use FPPC
Form 805 to assign such disclosure. The obligation to
file Form 700 is always imposed on the individual who is
providing services to the agency, not on the business or
firm that employs the individual.
FPPC Regulation 18700.3 defines “consultant” as an
individual who makes a governmental decision whether to:
• Approve a rate, rule, or regulation
• Adopt or enforce a law
• Issue, deny, suspend, or revoke any permit, license,
application, certificate, approval, order, or similar
authorization or entitlement
• Authorize the agency to enter into, modify, or renew a
contract provided it is the type of contract that requires
agency approval
• Grant agency approval to a contract that requires
agency approval and to which the agency is a party, or
to the specifications for such a contract
• Grant agency approval to a plan, design, report, study,
or similar item
• Adopt, or grant agency approval of, policies,
standards, or guidelines for the agency or for any of its
subdivisions
A consultant also is an individual who serves in a staff
capacity with the agency and:
• participates in making a governmental decision; or
• performs the same or substantially all the same duties
for the agency that would otherwise be performed by an
individual holding a position specified in the agency’s
conflict of interest code.
Designated Employee: An official or employee of a state
or local government agency whose position has been
designated in the agency’s conflict of interest code to file
statements of economic interests or whose position has
not yet been listed in the code but makes or participates in
making governmental decisions. Individuals who contract
with government agencies (consultants) may also be
designated in a conflict of interest code.
A federal officer or employee serving in an official federal
capacity on a state or local government agency is not a
designated employee.
Disclosure Categories: The section of an agency’s
conflict of interest code that specifies the types of personal
economic interests officials and employees of the agency
must disclose on their statements of economic interests.
Disclosure categories are usually contained in an appendix
or attachment to the conflict of interest code. Contact your
agency to obtain a copy of your disclosure categories.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 10
Terms & Definitions - (continued)
Diversified Mutual Fund: Diversified portfolios of stocks,
bonds, or money market instruments that are managed
by investment companies whose business is pooling
the money of many individuals and investing it to seek
a common investment goal. Mutual funds are managed
by trained professionals who buy and sell securities. A
typical mutual fund will own between 75 to 100 separate
securities at any given time so they also provide instant
diversification. Only diversified mutual funds registered
with the Securities and Exchange Commission under
the Investment Company Act of 1940 are exempt from
disclosure. In addition, Regulation 18237 provides an
exception from reporting other funds that are similar to
diversified mutual funds. See Reference Pamphlet, page
13.
Elected State Officer: Elected state officers include
the Governor, Lieutenant Governor, Attorney General,
Insurance Commissioner, State Controller, Secretary
of State, State Treasurer, Superintendent of Public
Instruction, members of the State Legislature, members of
the State Board of Equalization, elected members of the
Board of Administration of the California Public Employees’
Retirement System and members elected to the Teachers’
Retirement Board.
Enforcement: The FPPC investigates suspected violations
of the Act. Other law enforcement agencies (the Attorney
General or district attorney) also may initiate investigations
under certain circumstances. If violations are found,
the Commission may initiate administrative enforcement
proceedings that could result in fines of up to $5,000 per
violation.
Instead of administrative prosecution, a civil action may
be brought for negligent or intentional violations by the
appropriate civil prosecutor (the Commission, Attorney
General, or district attorney), or a private party residing
within the jurisdiction. In civil actions, the measure
of damages is up to the amount or value not properly
reported.
Persons who violate the conflict of interest disclosure
provisions of the Act also may be subject to agency
discipline, including dismissal.
Finally, a knowing or willful violation of any provision
of the Act is a misdemeanor. Persons convicted of a
misdemeanor may be disqualified for four years from the
date of the conviction from serving as a lobbyist or running
for elective office, in addition to other penalties that may
be imposed. The Act also provides for numerous civil
penalties, including monetary penalties and damages, and
injunctive relief from the courts.
Expanded Statement: Some officials or employees
may have multiple filing obligations (for example, a city
council member who also holds a designated position with
a county agency, board, or commission). Such officials
or employees may complete one expanded statement
covering the disclosure requirements for all positions and
file a complete, originally signed copy with each agency.
Fair Market Value: When reporting the value of an
investment, interest in real property, or gift, you must
disclose the fair market value – the price at which the item
would sell for on the open market. This is particularly
important when valuing gifts, because the fair market value
of a gift may be different from the amount it cost the donor
to provide the gift. For example, the wholesale cost of a
bouquet of flowers may be $10, but the fair market value
may be $25 or more. In addition, there are special rules
for valuing free tickets and passes. Call or email the FPPC
for assistance.
Gift and Honoraria Prohibitions
Gifts:
State and local officials who are listed in Gov. Code
Section 87200 (except judges – see below), candidates
for these elective offices (including judicial candidates),
and officials and employees of state and local government
agencies who are designated in a conflict of interest code
are prohibited from accepting a gift or gifts totaling more
than $470 in a calendar year from a single source.
In addition, elected state officers, candidates for elective
state offices, and officials and employees of state agencies
are subject to a $10 per calendar month limit on gifts from
lobbyists and lobbying firms registered with the Secretary
of State.
Honoraria:
State and local officials who are listed in Gov. Code
Section 87200 (except judges – see below), candidates
for these elective offices (including judicial candidates),
and employees of state and local government agencies
who are designated in a conflict of interest code are
prohibited from accepting honoraria for any speech given,
article published, or attendance at any public or private
conference, convention, meeting, social event, meal, or
like gathering.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 11
Terms & Definitions - (continued)
Exceptions:
• Some gifts are not reportable or subject to the gift
and honoraria prohibitions, and other gifts may not
be subject to the prohibitions, but are reportable. For
detailed information, see the FPPC fact sheet entitled
“Limitations and Restrictions on Gifts, Honoraria,
Travel, and Loans,” which can be obtained from your
filing officer or the FPPC website (www.fppc.ca.gov).
• The $470 gift limit and the honorarium prohibition do
not apply to a part-time member of the governing board
of a public institution of higher education, unless the
member is also an elected official.
• If you are designated in a state or local government
agency’s conflict of interest code, the $470 gift limit
and honorarium prohibition are applicable only to
sources you would otherwise be required to report on
your statement of economic interests. However, this
exception is not applicable if you also hold a position
listed in Gov. Code Section 87200 (See Reference
Pamphlet, page 3.)
• For state agency officials and employees, the $10
lobbyist/lobbying firm gift limit is applicable only to
lobbyists and lobbying firms registered to lobby your
agency. This exception is not applicable if you are an
elected state officer or a member or employee of the
State Legislature.
• Payments for articles published as part of the practice
of a bona fide business, trade, or profession, such as
teaching, are not considered honoraria. A payment for
an “article published” that is customarily provided in
connection with teaching includes text book royalties
and payments for academic tenure review letters. An
official is presumed to be engaged in the bona fide
profession of teaching if he or she is employed to teach
at an accredited university.
Judges:
Section 170.9 of the Code of Civil Procedure imposes gift
limits on judges and prohibits judges from accepting any
honorarium. Section 170.9 is enforced by the Commission
on Judicial Performance. The FPPC has no authority to
interpret or enforce the Code of Civil Procedure. Court
commissioners are subject to the gift limit under the
Political Reform Act.
Income Reporting: Reporting income under the Act is
different than reporting income for tax purposes. The
Act requires gross income (the amount received before
deducting losses, expenses, or taxes, as well as income
reinvested in a business entity) to be reported.
Pro Rata Share: The instructions for reporting income
refer to your pro rata share of the income received. Your
pro rata share is normally based on your ownership
interest in the entity or property. For example, if you are
a sole proprietor, you must disclose 100% of the gross
income to the business entity on Schedule A-2. If you own
25% of a piece of rental property, you must report 25% of
the gross rental income received. When reporting your
community property interest in your spouse’s or registered
domestic partner’s income, your pro rata share is 50% of
his or her income.
Separate Property Agreement: Generally, a public official
is required to disclose his or her community property share
of his or her spouse’s income. But, when a public official
and his or her spouse have a legally separate property
agreement (e.g., prenuptial agreement), the official is
not required to report the spouse’s community property
share of income, unless the funds are commingled with
community funds or used to pay for community expenses
or to produce or enhance the separate income of the
official.
Note: 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
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.
Income to a Business Entity: When you are required to
report sources of income to a business entity, sources
of rental income, or sources of commission income, you
are only required to disclose individual sources of income
of $10,000 or more. However, you may be required to
disqualify yourself from decisions affecting sources of
$500 or more in income, even though you are not required
to report them.
Examples:
• Alice Ruiz is a partner in a business entity. She has a
25% interest. On Schedule A-2, she must disclose 25%
of the fair market value of the business entity; 25% of
the gross income to the business entity (even though all
of the income received was reinvested in the business
and she did not personally receive any income from the
business); and the name of each source of $40,000 or
more to the business.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 12
Terms & Definitions - (continued)
• Cynthia and Mark Johnson, a married couple, own
Classic Autos. Income to this business was $200,000.
In determining the amount to report for income on
Schedule A-2, Part 2, Mark must include his 50% share
($100,000) and 50% of his spouse’s share ($50,000).
Thus, his reportable income would be $150,000
and he will check the box indicating $100,001-
$1,000,000. (Also see Reference Pamphlet, page 13,
for an example of how to calculate the value of this
investment.)
You are not required to report:
• Salary, reimbursement for expenses or per diem, social
security, disability, or other similar benefit payments
received by you or your spouse or registered domestic
partner from a federal, state, or local government
agency
• A travel payment that was received from a non-profit
entity exempt from taxation under Internal Revenue
Code Section 501(c)(3) for which you provided equal or
greater consideration, such as reimbursement for travel
on business for a 501(c)(3) organization for which you
are a board member.
• Campaign contributions
• A cash bequest or cash inheritance
• Returns on a security registered with the Securities and
Exchange Commission, including dividends, interest,
or proceeds from a sale of stocks or bonds unless the
purchaser can be identified.
• Redemption of a mutual fund
• Payments received under an insurance policy, including
an annuity
• Interest, dividends, or premiums on a time or demand
deposit in a financial institution, shares in a credit union,
an insurance policy, or a bond or other debt instrument
issued by a government agency
• Your spouse’s or registered domestic partner’s income
that is legally “separate” income so long as the funds
are not commingled with community funds or used to
pay community expenses
• Income of dependent children
• Automobile trade-in allowances from dealers
• Loans and loan repayments received from your
spouse or registered domestic partner, child, parent,
grandparent, grandchild, brother, sister, parent-in-
law, brother-in-law, sister-in-law, nephew, niece, aunt,
uncle, or first cousin unless he or she was acting as an
intermediary or agent for any person not covered by
this provision
• Alimony or child support payments
• Payments received under a defined benefit pension
plan qualified under Internal Revenue Code Section
401(a)
• Any loan from a commercial lending institution made
in the lender’s regular course of business on terms
available to the public without regard to your official
status
• Any retail installment or credit card debts incurred in the
creditor’s regular course of business on terms available
to the public without regard to your official status
• Loans made to others. However, repayments may be
reportable on Schedule C
• A loan you co-signed for another person unless you
made payments on the loan during the reporting period
Incentive Compensation: “Incentive compensation”
means income over and above salary that is either
ongoing or cumulative, or both, as sales or purchases of
goods or services accumulate. Incentive compensation is
calculated by a predetermined formula set by the official’s
employer which correlates to the conduct of the purchaser
in direct response to the effort of the official.
Incentive compensation does not include:
• Salary
• Commission income (For information regarding
disclosure of “commission income,” see Reference
Pamphlet, page 8.)
• Bonuses for activity not related to sales or marketing,
the amount of which is based solely on merit or hours
worked over and above a predetermined minimum
• Executive incentive plans based on company
performance, provided that the formula for determining
the amount of the executive’s incentive income does
not include a correlation between that amount and
increased profits derived from increased business with
specific and identifiable clients or customers of the
company
• Payments for personal services which are not
marketing or sales
The purchaser is a source of income to the official if all
three of the following apply:
• the official’s employment responsibilities include
directing sales or marketing activity toward the
purchaser; and
• there is direct personal contact between the official and
the purchaser intended by the official to generate sales
or business; and
• there is a direct relationship between the purchasing
activity of the purchaser and the amount of the
incentive compensation received by the official.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 13
Terms & Definitions - (continued)
Report incentive compensation as follows:
• In addition to salary, reimbursement of expenses, and
other income received from your employer, separately
report on Schedule C the name of each person
who purchased products or services sold, marketed
or represented by you if you received incentive
compensation of $500 or more attributable to the
purchaser during the period covered by the statement.
• If incentive compensation is paid by your employer in
a lump sum, without allocation of amounts to specific
customers, you must determine the amount of incentive
compensation attributable to each of your customers.
This may be based on the volume of sales to those
customers.
(See Regulations 18700.1 and 18728.5 for more
information.)
Investment Funds: The term “investment” no longer
includes certain exchange traded funds, closed-end funds,
or funds held in an Internal Revenue Code qualified plan.
These non-reportable investment funds (1) must be bona
fide investment funds that pool money from more than 100
investors, (2) must hold securities of more than 15 issuers,
and (3) cannot have a stated policy of concentrating
their holdings in the same industry or business (“sector
funds”). In addition, the filer may not influence or control
the decision to purchase or sell the specific fund on
behalf of his or her agency during the reporting period or
influence or control the selection of any specific investment
purchased or sold by the fund. (Regulation 18237)
Investments and Interests in Real Property: When
disclosing investments on Schedules A-1 or A-2 and
interests in real property on Schedules A-2 or B, you must
include investments and interests in real property held by
your spouse or registered domestic partner, and those held
by your dependent children, as if you held them directly.
Examples:
• Terry Pearson, her husband, and two dependent
children each own $600 in stock in General Motors.
Because the total value of their holdings is $2,400,
Terry must disclose the stock as an investment on
Schedule A-1.
• Cynthia and Mark Johnson, a married couple, jointly
own Classic Autos. Mark must disclose Classic Autos
as an investment on Schedule A-2. To determine the
reportable value of the investment, Mark will aggregate
the value of his 50% interest and Cynthia’s 50%
interest. Thus, if the total value of the business entity is
$150,000, he will check the box $100,001 - $1,000,000
in Part 1 of Schedule A-2. (Also see Reference
Pamphlet, page 11, for an example of how to calculate
reportable income.)
The Johnsons also own the property where Classic
Autos is located. To determine the reportable value
of the real property, Mark will again aggregate the
value of his 50% interest and Cynthia’s 50% interest to
determine the amount to report in Part 4 of Schedule
A-2.
• Katie Smith rents out a room in her home. She
receives $6,000 a year in rental income. Katie will
report the fair market value of the rental portion of her
residence and the income received on Schedule B.
Jurisdiction: Report discloseable investments and
sources of income (including loans, gifts, and travel
payments) that are either located in or doing business in
your agency’s jurisdiction, are planning to do business in
your agency’s jurisdiction, or have done business during
the previous two years in your agency’s jurisdiction,
and interests in real property located in your agency’s
jurisdiction.
A business entity is doing business in your agency’s
jurisdiction if the entity has business contacts on a regular
or substantial basis with a person who maintains a physical
presence in your jurisdiction.
Business contacts include, but are not limited to,
manufacturing, distributing, selling, purchasing, or
providing services or goods. Business contacts do not
include marketing via the Internet, telephone, television,
radio, or printed media.
The same criteria are used to determine whether an
individual, organization, or other entity is doing business in
your jurisdiction.
Exception:
Gifts are reportable regardless of the location of the donor.
For example, a state agency official with full disclosure
must report gifts from sources located outside of California.
(Designated employees/code filers should consult their
disclosure categories to determine if the donor of a gift is of
the type that must be disclosed.)
When reporting interests in real property, if your jurisdiction
is the state, you must disclose real property located within
the state of California unless your agency’s conflict of
interest code specifies otherwise.
For local agencies, an interest in real property is located in
your jurisdiction if any part of the property is located in, or
within two miles of, the region, city, county, district, or other
geographical area in which the agency has jurisdiction, or if
the property is located within two miles of any land owned
or used by the agency.
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 14
Terms & Definitions - (continued)
See the following explanations to determine what your
jurisdiction is:
State Offices and All Courts: Your jurisdiction is the state
if you are an elected state officer, a state legislator, or
a candidate for one of these offices. Judges, judicial
candidates, and court commissioners also have statewide
jurisdiction. (In re Baty (1979) 5 FPPC Ops. 10) If you
are an official or employee of, or a consultant to, a state
board, commission, or agency, or of any court or the State
Legislature, your jurisdiction is the state.
County Offices: Your jurisdiction is the county if you are
an elected county officer, a candidate for county office, or
if you are an official or employee of, or a consultant to, a
county agency or any agency with jurisdiction solely within
a single county.
City Offices: Your jurisdiction is the city if you are an
elected city officer, a candidate for city office, or you are an
official or employee of, or a consultant to, a city agency or
any agency with jurisdiction solely within a single city.
Multi-County Offices: If you are an elected officer,
candidate, official or employee of, or a consultant to
a multi-county agency, your jurisdiction is the region,
district, or other geographical area in which the agency
has jurisdiction. (Example: A water district has jurisdiction
in a portion of two counties. Members of the board are
only required to report interests located or doing business
in that portion of each county in which the agency has
jurisdiction.)
Other (for example, school districts, special districts and
JPAs): If you are an elected officer, candidate, official or
employee of, or a consultant to an agency not covered
above, your jurisdiction is the region, district, or other
geographical area in which the agency has jurisdiction.
See the multi-county example above.
Leasehold Interest: The term “interest in real property”
includes leasehold interests. An interest in a lease on real
property is reportable if the value of the leasehold interest
is $2,000 or more. The value of the interest is the total
amount of rent owed by you during the reporting period or,
for a candidate or assuming office statement, during the
prior 12 months.
You are not required to disclose a leasehold interest with a
value of less than $2,000 or a month-to-month tenancy.
Loan Reporting: Filers are not required to report loans
from commercial lending institutions or any indebtedness
created as part of retail installment or credit card
transactions that are made in the lender’s regular course
of business, without regard to official status, on terms
available to members of the public.
Loan Restrictions: State and local elected and appointed
public officials are prohibited from receiving any personal
loan totaling more than $250 from an official, employee, or
consultant of their government agencies or any government
agency over which the official or the official’s agency has
direction or control. In addition, loans of more than $250
from any person who has a contract with the official’s
agency or an agency under the official’s control are
prohibited unless the loan is from a commercial lending
institution or part of a retail installment or credit card
transaction made in the regular course of business on terms
available to members of the public.
State and local elected officials are also prohibited from
receiving any personal loan of $500 or more unless the
loan agreement is in writing and clearly states the terms of
the loan, including the parties to the loan agreement, the
date, amount, and term of the loan, the date or dates when
payments are due, the amount of the payments, and the
interest rate on the loan.
Campaign loans and loans from family members are not
subject to the $250 and $500 loan prohibitions.
A personal loan made to a public official that is not being
repaid or is being repaid below certain amounts will
become a gift to the official under certain circumstances.
Contact the FPPC for further information, or see the FPPC
fact sheet entitled “Limitations and Restrictions on Gifts,
Honoraria, Travel, and Loans,” which can be obtained from
your filing officer or the FPPC website (www.fppc.ca.gov).
Privileged Information: FPPC Regulation 18740 sets
out specific procedures that must be followed in order
to withhold the name of a source of income. Under this
regulation, you are not required to disclose on Schedule
A-2, Part 3, the name of a person who paid fees or
made payments to a business entity if disclosure of the
name would violate a legally recognized privilege under
California or Federal law. However, you must provide
an explanation for nondisclosure separately stating, for
each undisclosed person, the legal basis for the assertion
of the privilege, facts demonstrating why the privilege
is applicable, and that to the best of your knowledge
you have not and will not make, participate in making,
or use your official position to influence a governmental
decision affecting the undisclosed person in violation of
Government Code Section 87100. This explanation may
be included with, or attached to, the public official’s Form
700.
We note that the name of a source of income is privileged
only to a limited extent under California law. For example,
a name is protected by attorney-client privilege only
when facts concerning an attorney’s representation of
an anonymous client are publicly known and those facts,
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 15
Terms & Definitions - (continued)
when coupled with disclosure of the client’s identity,
might expose the client to an official investigation or to
civil or criminal liability. A patient’s name is protected
by physician-patient privilege only when disclosure of
the patient’s name would also reveal the nature of the
treatment received by the patient. A patient’s name is
also protected if the disclosure of the patient’s name
would constitute a violation by an entity covered under the
Federal Health Insurance Portability and Accountability Act
(also known as HIPAA).
Public Officials Who Manage Public Investments:
Individuals who invest public funds in revenue-producing
programs must file Form 700. This includes individuals
who direct or approve investment transactions, formulate
or approve investment policies, and establish guidelines
for asset allocations. FPPC Regulation 18700.3 defines
“public officials who manage public investments” to include
the following:
• Members of boards and commissions, including
pension and retirement boards or commissions, and
committees thereof, who exercise responsibility for the
management of public investments;
• High-level officers and employees of public agencies
who exercise primary responsibility for the management
of public investments (for example, chief or principal
investment officers or chief financial managers); and
• Individuals who, pursuant to a contract with a state
or local government agency, perform the same or
substantially all the same functions described above.
Registered Domestic Partners: Filers must report
investments and interests in real property held by, and
sources of income to, registered domestic partners. (See
Regulation 18229.)
Retirement Accounts (for example, deferred
compensation and individual retirement accounts
(IRAs)): Assets held in retirement accounts must be
disclosed if the assets are reportable items, such as
common stock (investments) or real estate (interests
in real property). For help in determining whether your
investments and real property are reportable, see the
instructions to Schedules A-1, A-2, and B.
If your retirement account holds reportable assets, disclose
only the assets held in the account, not the account
itself. You may have to contact your account manager to
determine the assets contained in your account.
Schedule A-1: Report any business entity in which the
value of your investment interest was $2,000 or more
during the reporting period. (Use Schedule A-2 if you have
a 10% or greater ownership interest in the business entity.)
Schedule B: Report any piece of real property in which
the value of your interest was $2,000 or more during the
reporting period.
Examples:
• Alice McSherry deposits $500 per month into her
employer’s deferred compensation program. She has
chosen to purchase shares in two diversified mutual
funds registered with the Securities and Exchange
Commission. Because her funds are invested solely
in non-reportable mutual funds (see Schedule A-1
instructions), Alice has no disclosure requirements with
regard to the deferred compensation program.
• Bob Allison has $6,000 in an individual retirement
account with an investment firm. The account
contains stock in several companies doing business
in his jurisdiction. One of his stock holdings, Misac
Computers, reached a value of $2,500 during the
reporting period. The value of his investment in each of
the other companies was less than $2,000. Bob must
report Misac Computers as an investment on Schedule
A-1 because the value of his stock in that company was
$2,000 or more.
• Adriane Fisher has $5,000 in a retirement fund that
invests in real property located in her jurisdiction. The
value of her interest in each piece of real property held
in the fund was less than $2,000 during the reporting
period. Although her retirement fund holds reportable
assets, she has no disclosure requirement because she
did not have a $2,000 or greater interest in any single
piece of real property. If, in the future, the value of her
interest in a single piece of real property reaches or
exceeds $2,000, she will be required to disclose the
real property on Schedule B for that reporting period.
Trusts: Investments and interests in real property held
and income received by a trust (including a living trust) are
reported on Schedule A-2 if you, your spouse or registered
domestic partner, and your dependent children together
had a 10% or greater interest in the trust and your pro rata
share of a single investment or interest in real property was
$2,000 or more.
You have an interest in a trust if you are a trustor and:
• Can revoke or terminate the trust;
• Have retained or reserved any rights to the income or
principal of the trust or retained any reversionary or
remainder interest; or
• Have retained any power of appointment, including the
power to change the trustee or the beneficiaries.
Or you are a beneficiary and:
• Presently receive income; or
• Have an irrevocable future right to receive income
or principal. (See FPPC Regulation 18234 for more
information.)
FPPC Form 700 Reference Pamphlet (2017/2018)
FPPC Advice Email: advice@fppc.ca.gov
FPPC Toll-Free Helpline: 866/275-3772 www.fppc.ca.gov
Ref. Pamphlet - 16
Terms & Definitions - (continued)
Examples:
• Sarah Murphy has set up a living trust that holds her
principal residence, stock in several companies that do
business in her jurisdiction, and a rental home in her
agency’s jurisdiction. Since Sarah is the trustor and
can revoke or terminate the trust, she must disclose
any stock worth $2,000 or more and the rental home
on Schedule A-2. Sarah’s residence is not reportable
because it is used exclusively as her personal
residence.
• Ben Yee is listed as a beneficiary in his grandparents’
trust. However, Ben does not presently receive income
from the trust, nor does he have an irrevocable future
right to receive income or principal. Therefore, Ben
is not required to disclose any assets contained in his
grandparents’ trust.
Blind Trusts:
A blind trust is a trust managed by a disinterested trustee
who has complete discretion to purchase and sell assets
held by the trust. If you have a direct, indirect, or beneficial
interest in a blind trust, you may not be required to disclose
your pro rata share of the trust’s assets or income.
However, the trust must meet the standards set out in
FPPC Regulation 18235, and you must disclose reportable
assets originally transferred into the blind trust and income
from those original assets on Schedule A-2 until they have
been disposed of by the trustee.
Trustees:
If you are only a trustee, you do not have a reportable
interest in the trust. However, you may be required
to report the income you received from the trust for
performing trustee services.
Wedding Gifts: Wedding gifts must be disclosed if they
were received from a reportable source during the period
covered by the statement. Gifts valued at $50 or more are
reportable; however, a wedding gift is considered a gift to
both spouses equally. Therefore, you would count one-half
of the value of a wedding gift to determine if it is reportable
and need only report individual gifts with a total value of
$100 or more.
For example, you receive a place setting of china valued at
$150 from a reportable source as a wedding gift. Because
the value to you is $50 or more, you must report the gift on
Schedule D, but may state its value as $75.
Wedding gifts are not subject to the $470 gift limit, but they
are subject to the $10 lobbyist/lobbying firm gift limit for
state officials.
Privacy Information Notice
Information requested on all FPPC forms is used by the
FPPC to administer and enforce the Political Reform Act
(Gov. Code Sections 81000-91014 and California Code
of Regulations Sections 18110-18997). All information
required by these forms is mandated by the Political
Reform Act. Failure to provide all of the information
required by the Act is a violation subject to administrative,
criminal, or civil prosecution. All reports and statements
provided are public records open for public inspection and
reproduction.
If you have any questions regarding this Privacy Notice or
how to access your personal information, please contact
the FPPC at:
General Counsel
Fair Political Practices Commission
1102 Q Street, Suite 3000
Sacramento, CA 95811
(916) 322-5660
(866) 275-3772