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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: JAMES F. PENMAN
City Attorney
Subject: Conflict of Interest Advisement
Dept: CITY ATTORNEY
ORIGINAL
Date: February 25, 2004
Synopsis of Previous Council Action:
N/A.
Recommended motion:
N/A.
-:J.~
Contact person: James F. Penman
Phone:
5255
Staff Report and December, 2003
Supporting data attached: FPPC Bulletin: various state
statutes and FPPC regulations
Ward:
All
FUNDING REQUIREMENTS: Amount: N/A
Source: (Ace!. No.)
(Ace!. Description)
Finance:
Council Notes:
Agenda Item NO.~
3 J ,j D~
JFPfed[ConflictOflntAdvisement.rca)
STAFF REPORT
Council Meeting Date: March 1. 2004
TO:
FROM:
DATE:
AGENDA:
Mayor and Common Council
James F. Penman, City Attorney
February 27, 2004
Conflicts of Interest Advisement (Agenda Item 51)
Below are listed certain significant developments concerning this agenda Item:
1) Chapter 233, Statutes of 2002 adds a requirement that, in addition to publicly
stating the nature of the conflict and recusing himself/herself, the elected
official must leave the room, except which speaking on the matter as a
member of the public, during the time allocated for the public to speak on the
agenda item; after speaking, the elected official must leave the room.
2) Chapter 172, Statutes of 2002 eliminates the requirement that Statements
of Economic Interest filers disclose loans from commercial lending
institutions made during the normal course of business;
3) Chapter 1741 Statutes of 2002, requires late contribution reports to indicate
whether the contribution was a loan;
4) Chapter 212, Statutes of 2002 prohibiting candidates from returning to
himself/herself contributions made by the candidate to his/her own campaign
or controlled Committee DOES NOT APPLY to candidates for local elective
offices, it only applies to candidates for state elective offices;
In addition, frequently arising conflict of interest issues include:
1) Abstaining on any matter which is within 500 feet of real property, in which
the elected official has a financial interest, based on the presumption of
financial impact unless you can prove no financial impact.
- FPPC has held that if the action under consideration will increase or
decrease the value of your property, by even as much as a penny, there is
a financial impact.
2) Campaign donations do not trigger an abstention, however, a series of
campaign donations and a series of votes in favor of projects or issues
beneficial to or supported by campaign donors may be used as evidence
against you in a prosecution for bribery or in an action to remove you from
office pursuant to Government Code Sections 3060-3075.
Council Meeting Date: March 1,2004
Agenda: Conflicts of Interest Advisement (Agenda Item 51)
Page 2
3) Government Code 91090 - The Death Penalty For Politicians.
"... city officers or employees shall not be financially interested in any
contract made by them in their official capacity, by any body or board of
which they are members. Nor shall ... city officers or employees be
purchasers at any sale or vendors at any purchase made by them in their
official capacity."
- 91091 -
- 91091.5-
- 91097-
- 91098-
Remote Interest'
Interest in Contract; Quantity and Quality of Interest;
relation to contracting party.
Penalties
Disclosure or use of confidential information for
pecuniary gain.
4) Government Code 987100 - "No public official... shall make, participate in
making or in any way attempt to use his official position to influence a
governmental decision in which he knows or has reason to know he has a
financial interest."
Also attached is the latest FPPC Bulletin. Of note is the new FPPC Regulation
which codifies the "Segmentation Process" (p.7).
'Chapter 701 , Statutes of 2003 states existing law prohibits certain public
officials and employees from being financially interested in any contract made by them
in their official capacity or by any body or board of which they are members. An officer
is not deemed to be interested in a contract entered into by a body or board of which
the officer is a member if the member has only a remote interest in the contract and
other requirements are met. A remote interest in required to be publicly disclosed and
thereafter the public body may authorize, approve, or ratify the contract in question, but
the officer is disqualified from voting. Existing law also defines a remote interest for
these purposes as including, among others, an interest of an employee or agent of the
contracting party, subject to specified conditions.
This legislation specifies that a remote interest under these provisions include
that of a person owning less than three percent of the shares of a contracting party that
is a for-profit corporation, provided that the ownership of the shares derived from the
person's employment with that corporation.
2 CA ADC S I~-','~ 2
2 CCR s 1~704 2
Ca] AdmIn Code [ll ' 5 I R70..+ :2
C
BARCLA YS OFFICIAL CAL1FOR~IA CODE OF
REGULA TIO~S
TITLE 2 AD~11:-;ISTRA TIO:\
DIVISIO\ 6 FAIR POLITICAL PRACTICES
COMMISSION
CHAPTER 7 CONFLICTS OF INTEREST
ARTICLE 1 CO\FLlCTS OF INTEREST.
GENERAL PROHIBITION
This da.tabase IS current through 2:6:'2004,
Register 2004. No 6
18704 2 DeterminIng \\/hcther Dnculy or
Indirectly lnvolved In a Go\'crnrnentJI DecIsion
Interest in Real Property
(a) Real properly' In "",hieh a public official has an
economJC Interes! IS dIrectly Involved 10 a
governmental deCISIon If any' of the followlI1g apply
(1) The real properlY- In \\'hlCh the offlc;al has an
interest, or any pan of thaI real properlY, IS located
\.I.'ilhin 500 feel of [he boundaries (or the proposed
boundancs) of the properlY' whICh IS the subJecl of
the governmental deCision ror p:'.Hposes 01
subdivision (a)(5), real properly' is located Within
500 feet of the boundaries (or proposed boundaries)
of the real propert)' which IS the subject of the
governmental declslon" If any part of the real
property IS withIn 500 fect of the houndancs (or
proposed boundarIes) of the redn'clopment proJecl
area
(2) The governmental declslon lll\'olves the lonlng
or rezomng, annexallon or deannexJ.t1on, sale,
purchase, or lease, or trlclusion in or exclusion from
any ciry, county, dIstrict or other local governmenral
subdivision, of the reaJ property In which lhe offlClal
has an interest or a Similar declslon affecting [he
real property For purposes of thiS subd1\'Ision, the
terms "zoning" and 'rezoning" shall refer to the act
of establishing or changing [he zoning or land use
designation on the real property' In \\hlch the offiCial
has an interesl
(3) The govemmenral deCision lnvolves the
issuance, denJal or revocation of a license, permit or
other land use entlllemenr authoriZing a speCific use
or uses of the real property' In v.hlCh the offlClal has
an interest
Page 1
(4:1 The go\crnmcntal deciSion lnvoh.'es the
ImrOSI:IOIl, repeal or modlflCatlon of any taxes (lr
fees assessed or Imposed on [he real property In
v. hleh the offiCial has an interest
(5) The gO\'E:rrUTlental deCISIOn is to deslgnale the
~U[\T)' area, 10 select the project area, 10 3copt [he
prelIminary plan, to form a project area commlllee,
to certIfy [he cr,vlforUTIcntal document, 10 aoopt the
redevelopment plan, to add terfllory !O lhe
redevelopment area, or to rescind or amend any of
the above deCISions, and real property 111 which the
offlclal has an iIlleresL or any' part of i: is located
WIthIn the boundafles (or lhe proposed boundafles)
of the redevelopmenl area
(6) The deCISIOn Ir1volves construction of, or
JfTljHO\ements to, SlreelS, \l,.'ater, sewer, storm
dralIlage or slmllar facll111es, and the real property
In wh1ch the offiCial has an Interest will recel\'e nev.
or Improved servIces
(b) NO[WllhstandJl1g 5ubdl\'lSIOn (a) above. real
properlY in whlch a publ1c offICial has an Interest IS
not dlfeClI} In\'olved In a governmeJHal deCISion, bUI
lS lndlfeclly involved If
(1) The deCISion sokiy concerns lhe amendment of
an eXlsllng l0:11ng ordlllance or other land use
regulation (such as changes In the uses pcrmlltcd, or
development standards appllcable, W lIhm a
partIcular zoning calegory) which is applicable 10 alJ
other properl1es deslgnated In thaI category, which
shall be analyzed under Tule 2, Cahfornla Code of
Regulat10ns, section 187052(b)
(2) The decisJOn soleI)' concerns repairs,
replacement, or maln[cnancc of eXlstll1g strce[s,
water, sewer, storm drainage or slmilar facllllles
(c) Dctcrrmnjng the applIcable materialIty standard
(I) If thc real property in whIch the public officlal
has an economic interest is direct])' Involved In a
go\'crnmen:al deClslOn, apply' the materia!!!}
standards 1Il Tille 2, Califorrlld Code of Regulations,
seclIon 187052(a)
(2) If a real properlY imerest IS not directly
involved In a gO\ ernmemal declslOn, apply the
Copr. -:h: \l..,'est 2004 No Claim to Orlg US Govt Works
2 CA ADC S ]8'042
Page 2
marerialiry standards ]n Title 2, CalifornIa Code of
Regulatlons. section 18705 2{ b)
< General MaTerIals (GM) References.
AI1JlotatlollS, or Tables>
I\'o[e AUlhofllY cited Section 831J2, Government
Code Reference Sections 87]00, 87]025,
871026,871028 and 87103, Governmen[ Code.
t-! I STC;';"
Ne\-,' sec:.:.:=::~ :.i~P:--; ~~-23-9S; Cr.::er6t~'Je ll-2~j~93 pu::'-::,LJa~t :-0 t:IE :'9i:j verSIon
of Gcver~ne~t Code sectIcn il32J.2 and tItle 2, Ca21fcrnlB Coce of
RegulatIons,
sectIon :2'3i2 d~
ai:G
(e
IReg:.ster
_' U I
No.
~3 )
2. Change w:t~c~t rEg~~a~Orj effect a~;end:rlg sectIon headIng ~:led 3-26-99
p~rsuant to S~ ~lC~ lJO, tltle 1, C211~or~.a Cace cf Keg~_atlc~S (Register
99, No. :3'1
Edltcr:al cor~ectlon Qf~llstc~~'
!,FeQ.:cs':.c:: 2JC'C),
~~o .
2 ~ "
C;. i'\."TIendrnent f.:...~ed ~-16-?C:=;~; cpera::l\'e 2-~-2::)Q~. S'.~brrdttej to C;~L for f.lllr:~
pursuant tOtalr PO~~tlC2l F~act:ces CC~~lsslon Cfflce sf Ad~l~lstfa~lve Law,
J CiVIl CO:092~, C211fcr~la C2Cft of Ap~e21, T~:;j Ar0C_la~e Jls~rlct,
l:cnpublisr.ed =:eClSIC;:, .L:,~Hll L 1992 FFPC :-eqLilCitIc;lS o~,ly sub::ec: to 19'~
Ac:-r..:nist:"at::.".-e> P~ccec....:=-c: ;'.ct :rulerr'3K~i~=J ~C:~1~lre;-'",e;-'ts ?eg:st,('r /'J'J:, l'JC.
3
c f>JT,e:-;dT,cct ~l_lej 2-1e-2C23; c::TeratI\"C 2~:Fi-2:::'OJ. S:-.J='r~;.tted ::c C:.D,L fcr !:'lll;:G
p~rSu2nt tara:f FO:lt:cal Pract~ces CO~~:SSlC!1 OffIce cf Ad~lnlstrat.:cve I.aw,
3 C.:vil CCIC9?~, C:3J.:..rcr;;':"d Ce,.:.::-t of A~pea:, ThlfG .~ppE::'llate C:'..i..st;lC:t,
ncnpublished decls:cn, ~p[ll 2~ 1997 (F??C requ:at:cns o~1i s~b=ec~ to 1974
:~"d."f,j_;..::..st:r2t l\'E:' Pr~<:eCJc.:_:::e TiCi~ rLle.~(3.k:n~ :re,~~lre:':Er1ts) :Fe,.::;:s:er 2::":J3, :\0.
81 '
2 CA ADC s 187042
END OF DOCUMENT
Capr ,r;;. \Vesl 2004 No ClalfTI 10 Orlg L S GOV[ Works
'"
Regulations of the Fair Pofltical Practices Commission
TITLE 2, DIVISION 6, CALIFORNIA CODE OF REGULA TIONS
18705.2. Materiality Standard: Economic Interests in Real Property.
(a) Dlrect,~y InvOlveO' real ~rope,r:y
: 1) Realp,'~perry. other IMan ieaS€,I',olds The rnanc:a.' ertect of a 90l,lernmertal dec,sion on tne
real properry IS preSwmed !o be ,.,..,alenal T1;:s presump~lon may be rebuNed by proof [hat It 1$ liet
reaSonably foreseeable tllat ~e govern{;ienlai deCISion will ha~e any F:nanClai el'feC1 on U,e reai
property
12) Real peope"y leasehOlds The ~cacc'a' e"eeI 01 a go'eccc"e",.1 dec;s;cn en ire real prepecr,
','1 which an olfc:a;' r,o'ds a 'ease;~oiCl wte:est '5 CreSL.nced to De ma:e,"'a,' Th",S pes,yrplc,,,: '7'103'1
ce 'ebue,c bf prool tea: ,I.s nOI -eaSO"abl) 'Cceseeable that ire 9"ecemeola, cec's,on w'" na',e
an,. e~ec: o,~; any of I,"e (OI"OWI'1g
fA) The le,-""',''1at'O'l date cl :,';e iease
9,' h,e 3'1'":0","':t -::1 'ert ca,a by t':e ,lessee far :he :eas2d real p,"cper:y, e'U"'er Pos:t'veIY Cd
",:e;dt,ve:/'
I,'",' T"e "2!~'e al i,he lessee 5 r!~,"'r to s"t,lease :he re3,~ p::per1', e':"€r ccs'r',e,'y or "€9af:ve}
G' The 'ega!,:. a:1c''''3:;le use or ~,he Cl.',cent use cr the rea' PJ;::'ert, t~ Ir,e 'essee, c,
IE; -;--he use C' e'1Jo:,":'e':t 0' :;~,e 'easec rea:' ,P'Cpert, ty th.e'essee
;'0) Inolrecr:y in,oived real ;::::';::er1'j I:-:(e'ests
(') Real prc;::erty etrer !ha,'l 'easeho.'ds The ~"anCla,' e~ectc' a;over,'lrr;el"'ta: Cec:s.'cn O'l ,eal
ptoper;,'! wr,ct; 's ;nClrec!,'y I,~volved:n the gc..'er'1.'T1el'tai :::'ec'slcn 'S presumear-:ot!o t,e mate,~a'
bs p'escmpl.c"Taf be rebceed oy peGCI ,oa: Iheco are spec,'c WGumstaoces re,ar'''9 iO,
gcver:-:/T'€l'ta,' C€c,s:cn, its ~nanc:ai eHect, a,"c t,~e nat>.Jre 01 the 'eai prcpe~1 'n .....,r,Ol L'1e PL..C,',C
clficlai ,'1as an econQrT'IC Ir'\ter€st, which ma~e It redsonab:'y loreseeaOie that rhe Jeers,or '''':'1,' ha'ie
a ,':!alena! fina"cla! ef"ec~ on :he rea,' prcce~f I~ Wf',c.'1 t,I;e (:L.biIC o ff.'c 'a,' has an :(1teres~
E,lampies of spec:(lc:lrc>.Jr;stances that wil:!Je consJCe'ed Ir.elude t'ut a'e ,'let ,'Imited :0
clrClJmSlaflces '....he"e the dee:slon aHec:s
(A) T.r,e deve:cpment potent,al or mCome ~rod\.Jc.:;g pClenl'a,1 of If'e ,'ea,1 prcperri In wnlctl the
off:;al has ar econOmiC !nrereSl
(8) T,'1e use of trle rea,' ~ropertl'n WhiCh the offic:a: ras a:-: eConCrT1.'c :n:erest
(e) T,'1e Character of tr1e ne!ghbOrrcoonCluCing, blJt ,'lot IIml!ed to Subs!anr,'a! e,l'fects On traH"c
view privacy IrtenSI~Y 01 wse nOise :e..eis air e,r1i,'sSlcr,s, or Slmdar traits of Ire re!ghtomcOd
(2) Real prope,")', leasehOics -;-,'1e ~nanclal effect of a gcverr.mental dec.'s,cn on real property In
which a puctlC offiCial has a ;'ease,'1old Interesl and WhlCrllS indirectly InvolVed :n t..'1e
gOve:r':mertal cec:slon ,5 preSumed nOI to be ,"'T1atenai Tr"S preS;J:Tlptlon may be rebut!ed by
prool tMat there are spec,~c Wcumslar:ces regar:lng t.'1e gcvemmentaJ dec:s'on. 115 finanCial
effect, and t!'1e nature of L'le real property 1.'1 W,~ICr, ttle pUblic offiCJal has an eConomic :r':eres~
WhiCh make it reasonabry foreseeable that ~e govemrr:ent.al deCIsion w,11)
(A) Change the legally a'lowable use of tre leased real property, and Ule lessee has a ngr-:t ~o
sublease Ule real property,
(B) C1'1ange the lessee"s actual use of the real ;:rODer:y
(C) SubstantJally eni']ance or s:gnIAca'1~y decrease the ,lessee's use or e",'oyment of the leased
real ;iroperty;
(0) Increase or decrease the ar'lount of rent lor L'1e leased ,'eal property by S"'percent du"ng any
12.month perlod follOWing :he deCISion, or
IE) Result in a Change In the lermlration dale of the :ease
NOTE Aut~onri c:ted Secllcn 831 ~2, Go',,'ern,71err! Cooe
Ree'ence Sec~cnse7'OO 871025,B71026,87;C28and97103 Ge""er,':r'lertCoce
12./C8/0C
r
(
-.
.J "t':'l;cepr In. I"
. clause, ar,d ~'
l'
,
c
.
SeCI:on
1090
:090 I
1091
; ~J'j i
1091 "2
i C91 J
;09 i .:;
](':0=
I D9~ 5
il..-:';!}
IC9~
,
:D95
!D96
le9;
:098
~
"
,
j
ARTICLE ~
Proh:btllOns A?p:lcable to Spec:fied Officers
ContraclS, sales. and purchases made In official capac!!y
Comrr.lsslon for pIJCe;T',enl of ins;J~ance
"Remote Interest" in CQnl.act
R.:ghl of public officer 10 subdivide land II, v..h:ch he has tn:eres[
When financIal Interests 3~ect local I,l,.ofkforcc t:-neSlmenl boa.rd mer.l:c's
voting rigr.l:.
happLcabillty of Secl:on 1090 as re!a:lng (0 COn,fJC! or ~ranl mz:Je by
counly chlldren and famlllt's COfr;mlss:on -
L;[crcSI In (omrac!, Quan:i[y and q:':JLty o( :n:creSl. Relation to cor.lLJ:I-
lilg part)
A'.olda.'ice of prohibited corHr3ct
Rlgh~s of good fallh third pan:
Purchase, sale, or d~djlng :n v-a.:-;-ants or olhu n:d~r.ce of rutilc Indc':-:.ld-
r.ess
A.Ff:dJ"ll of nOil\IOlallon required before a]]o"""'ing accounlS
Paymel:t of "V3.~JrlS or olher e\:dcnce of Indebtedness
SUSpCn5iO:i of seltlemenl or pal ~en[
Per,aUles
Disclosure or use of confident:a] ir:f:::;rrnatlon for pecuniary gain
ColLatenJ References:
Wilkin & Ep~eln Cnmmai La'.'.. Cd d) S i217
Witkin Surnrna..r;- (9:h ed) ContrJCIS S.; 6=..1., bn, 628
La... Revie... AnlcleJ
Appea..--ar.ce of fJ.lITiess dcctr.ne clos:ng a loophole II: C3IlfCiI'dJ.'s Political Refor.n ACI
J 7 Ca! \Vest LR 75
Ar.nOIQricTls.
Val!dll)' and CO:lslruction of e:laC:ments rc~u!n.ng publiC officers or candJdales for off:ce
to dtsclose fina.:Klal condJl:on md relationships. 37 ALR3d J 338
Validity.'. cons~ruClion. and appllCaucn of reguiatlon regarding outs:de empl:Jymenl CI
gover.lmental employees or officers. 94 ALR3d 1230
~ 1090. Contracts, sales, and purchases made in official capacity
Members of the Legislature, state, county, district, judicial district, and
city officers or employees shall not be financially interested in any contract
made by them in their official capacity, or by any body or board of which
they are members. Nor shall state, county, district, judicial district, and
31
9 1090
PCBLlC OFFICERS Ai\D E.'>lPLOYEES
city officers or employees be purchasers at any sale or vendors at any
purchase made by them in their offiClal capacity.
As used In thiS anlcle. "district" means any agency of the state formed
pursuant to general [ilW or speCial act. for the local performance of
govemmental or propfletiL: fcnctlons within Ilmlled boundiLries.
E".:~kJ S'J:~ :l)-l.~ l'"
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!J6: -.:h ~31 ~ ! SIJI~ IYG~ (., :17::i: [ SlJlS j:j7Q lh ~-li ~
SlatS
.\.mt'ndmenh.
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S-,\I'l:.'~ ;\nJ I~,_": J',0CiJI,C",j}, Jcr;'::;'SitOr: cl ;-'L.b:,~- l'JrtJ~ F,r1 C 9 MIS
C~)U1:~v' ~w~ollJl b':J:J m<:::1D..:r..:, ~,rJn~iail', l:lt~','";;'~:t'iJ H & S C ~ 14.415
Ol((<:~ ci h'<:Jllh l'l:<: d,,:rll.':I]' "nJne;,,!I>' Iric'r2Qcd H & S c 9 l1111
Suc\'r:n:l'C'..JL'nt cO: S~JI": P~:rl:n~ n,'1 :8 i,J'.L' I~I::',,-'-;: IrJ corlr3~': Pl':l C S~ 99, 100
J~ll-"iC)1 l'! r<:::,:cn,li p.'rk c..:!~lr,':: ":,,-~C:O'-; 3nj c'~::_('rs 1:1 distfll: CO~l:rJliS proh,b:lcJ PlJb
R(~ C ~ 5567
Collalt'r::li References:
V.;I;..:r, & [pj:~'ln (nm:r-:J! L:l',\ ,:J ed,';; -;~..: 1:17 1~19
\\ Ilk:n SumiTi~\ Lith cd) Cen }~ 6:..: 6:6 6~i 6:9 A~cncy ;:tne Er.lplo)'mt'nr
;.P()
CJI jur _Ie (Rc'\,1 Cnl'1lnJl LJ\\ ~; ~26:, 2169
.\lllkr & SIJ1"":" CJi Rl'JI E~tJI(, :J ; 6 ~ I
L,{'o' Recl!!\> Ar,',cli!J
Conll'L: ot- Ir,ln,'Si In p\Jbl:c ccra:JCIS In CJIrt'I,)iT'"J 44 CJI LR 355
CJldOmlJ'S E'o\\'rT'.rncr,raJ COrd,(1 of In:eesiS Jel Tht' publiC Inlere::il VerSLS lJ'.,,: nghl :0
rrl"JC~ 49L-\B:uB317
J:lICit:SI cf plJbl,.: ctt:cers ,n c.:;n:S'hIS prohlbll':"..! b: 1:1\V ~3 SCLR 3'5
CJlill):T1IJ conn,n cl :nler('Q IJ\\-; 36 SCLR 136
Tcmp:JIIOn a'i,.:1:rJ..!illnn In C;J.J::0IC1iJ Scnol,)1 8'2J.[J 5 S!:ln LR 61
~~
~ 1090
GOVERNMENT CODE
\Vhcre a CII) pruposcs [0 enter 11110 a development agreement \\Ilh a developer, J 'ienlOI ,Liff member of the
elly' may not partiCipate In the negolliltlon, and drafllng ut lh(; agrcernent jf her spouse IS employ-cd b, a hIm
th:J\ \l,.:11 [lllll'lde (YJlrcJch "en ICes jor the dnclupcr with respe~1 to the P[(llcct pursuant lU a YCMly [C[cllner
agreement. even thuugh the Spouse hdo no iJ',>"nership Inlerc'! In the hrm. he \>.1]1 nor u,.ork on the~ItJ 's prolcd,
and hiS Income IAdl nUl be ahcclcd by the outcome of the dcn:]opment agreement or prolect KS Ops Ca]
Ally Gcn 34
A city council rn3Y COntinue to lease p;operl:- to J nonpfofl! corporation under a 40-ycar lea,e that v.J!j expire
In 29 years ncn though a flewl; elected COl.Jr1cil member IS the salaried neCUlne director of the COrpor,llJOn
SS Ops Cal Alty Grn 1:6
Pursu;mt to lhe "rer.Hlle Interest' excepuon 0f (JeA C ~ ]()llL a city councJI may grant funds to a nOI1I'rufil
eorporJ1I0l1 pHl\lded that the nn\l) ejected councd memher docs not partICipate In the making of the granls
3nd discloses here nnanClal interest If] the grants 10 the Llty council, Jnd the mlnesl JS note In Ihe cC!uncli's
offiCIal records S5 Ops Ca! ,Att) C;e:l ] 76
A city councl] ma; not con~lnue 10 execute an extension uf a contrJct With a construction company' 1(1 "noise-
Woo!" homes near a C]ly alrpon If the company's Jrchitectural subcontractor]s the hrm o\\ncd and managed
by a newly ejected C]ly counCil memher elen though the hrm has been the architectural subcontr<luor 01 the
project for more tt.an n\'t years bUl the architectural subcontractor lor n1JS particular construclJOf1 company fur
the past three J'ears 85 Ops Cill AllY Gen 176
A Clt} counCil may not enter mto a puhlic works contract with a pfJITle contrdctnr who is the loweq bJ(jder for
the project If the cny's 1Tl3yor IS an ufficer, shareholder, and employee of a Ilsltd suhconlulctor of the prime
cuntractor dnd the mayor has nelt been a supplier of guods or sel\lces to the prtme contractOI for at least live
ye.'HS pnm to IllS ekUlUn to otfice 860ps Cill Atty Gen 118
A City council may not enler Into a ccntraCl \~llh il lav.' hrm, of which d city counCil member IS a partner, to
represent the cH}' In a lawsuil eYen 11 rhe la\\ firm would recel\e no fees from the city for the senlces and
would agree l0 lum over to the C:\} ilr:}' attorney fees that mlgr.~ be a\.\,arded In the IltigatJl1n Rfl Ops Cal
Alty Gen 13R
~()TES OF DECISIO~S
I. III General
1997 SUII brought hy d local health can' dlstllct to
rcc()\'er possesslOIl 01 d publ1dy owned hosplta] on
the gruunds that the underlYing Iedse agreement was
VOIded by' Ciov C 9 l090 was tJme -bJrred by lhe
four- year ]IJTIilallons penod uJlder Code CI\' Pmc
~ 343 r>.lartn HealthcJre DIst \' Sutler Health (2002,
3rd Olst) !OJ Cal App 4th 861, 127 C.li Rptr 2d I ~ 3
* 1091. "Remote interest" in contract; Disclosure of interest; Penalty for
willful failure to disclose
(a) An officer shall not be deemed to be Interested in a contract entered into by
a body or board of which the officer is a member Within the meaning of thiS
article if the offlcer has only a remote interest in the contract and if the fact of
that interest is disclosed to the body or board of which the officer is a member
and noted In ItS official records, and thereafter the body or board authOrizes, ap-
proves, or ratifies the contract In good faith hy a vote of Its memhershlP suf-
tlcicnt for the purpose v....'ithout counting the vote or votes of the officer or member
with the remote interest.
(b) As used in this article, "remote interest" means any of the following:
(I) That of an officer or employee of a nonprofit eO'l'oratlOn, except as proVided
in paragraph (8) of subdivision (a) of Section 1091.5
(2) That of an employee or agent of the contracting party, if the contracting party
bas 10 or more other employees and If the officer was an employee or agent of
that contracting party for at least three years prior to the officer initially accept-
ing hiS or her office and the officer owns less than 3 percent of the shares of
stock of the contracting party; and the employee or agent is not an officer or
director of the contractlllg party and did not directly participate in formulating
the bid of the contracting party
For purposes of this paragraph, time of employment with the contractlllg party
by the offlcer shall be counted 111 computll1g the three-year period specified in
tlm paragraph Clen though the contracting party has been converted from one
form of business organization to a different form of business organization \\'jthin
three vears of the Initial takll1g of office by the ofiiccr. Time of employment 111
16
Beglnlllf\g Irl 1992
iralin. Ind'CJlechdngn or add'l]['ns ... In(!,cale oml.\Slons
12 Gov C;
GOVER!'iME'
[hat case sh<J
the real or ult
slmllar to th;
purposes of t
holding 311 il
ultim<ltc owr
(3) That of a
conditions at
(A) The age!
in a coullty' ,
(B) The con'
(C) The eml
contracting i
no ownershi
(D) The con
IE) The emf
the contracti
(F) The cem
(4) That of a
(51 That of
(6) That of
employee, (
contracting
broker, real
received arlt
result of th,
percent or n
or real estat
(7) That of
Agncu]tura
C~de for tl
products or
(8) That of
been sLlppl1
to his or he
(9) That of
agreement
Conserv3ti(
(10) Excep
of or a pel
bank holdil
contract ha
(II) That
engmeenn1
a consultir
does not a]
(12) That (
assistance
States Hot
:2 G~v C
GOVERl"!\1E:\T CODE
that case shall be counted only if. after the transfer or change in organizatIOn,
the real or ultimate ownership of the contracting part),; is the same or suhstalltial1y
similar to that which existed before the tr<ll1sfer or change 10 organization. For
purposes of this paragraph, stockholders. hondholders, partners, or other persons
holding an interest in the contracting party are regarded 3S having the' "real or
ultimate o\\nerShlp" of the contracting party
(3) That of an employee or agent of the contracling party, If all of the followmg
conditions are met:
(A) The agency of which the person IS an officer IS a local puhlIc agency located
m a county With a populalion of less than 4,000.000.
(B) The contract IS competilively bid and IS not for personal services.
(C) The employee or agent is not in a primary management capacity with the
contracting party, is not an officer or director of the contracting party, and holds
no o\.vnershlp interest in the contracting part).'.
(D) The contracting party has 10 or more other employees
(E) The employee or agent did not dnectly participate in formulating the bid of
the contracting party.
(F) The contracting party is the lemest responsible bidder
(4) That of a parent in the earnings of hiS or her tmnor child for personal serVices.
(5) That of a landlord or tenant of the contractmg party.
(6) That of an attorney of the contractIng party or that of an owner. oHicer,
employee, or agent of a firm that renders, or has rendered, serVIce 10 the
contractlng party in the capacity of stockbroker. insurance agent, IT1surance
broker, real estate agent, or real estate broker, If these Individuals have not
received and ",,IiI 1 not receive remuneration, consideration, or a commission as a
result of the contract and if these 11ldlvlduals have an ownership interest of 10
percent or more in the la\\' practice or firm, stock brokerage firm, insurance firm,
or real estate firm.
(7) That of a member of a nonprofit corporation formed under the Food and
Agricultural Code or a nonprofit corporation formed under the Corporations
Code for the sole purpose of engagIng in the merchandls11lg of agricultural
products or the supplying of water
t8) That of a soppiIer of goods or services when those goods or services have
been supplied to the contracl1ng party by the officer for at least fne years pnor
to his or her election or appointment to office.
(9) That of a person subject to the provisions of Section 1090 In any contract or
agreement entered into pursuant to the proviSions of the CalifornIa Land
Conservation Act of 1965
(10) Except as prOVided in subdivision (b) of Section 1091.5, that of a director
of or a person ha\'ing an o\\/ncrship interest of 10 percent or more in a bank,
bank hold1l1g company, or savings and loan association w1lh which a party to the
contract has a relatIOnship of borrower or depositor, debtor or cred1lOL
(11) That of an engll1eer, geologist, or architect employed by a consulting
engineering or architectural firm. ThiS paragraph applies only to an employee of
a consulting firm \\.'ho does not serve In a primary management capacity, and
docs not apply to an officer or director of a consulting finn.
(12) That of an elected officer otherWise subject to Section 1090, in any housing
assistance payment contract entered into pursuant to Section 8 of the Un1led
States HOUS111g Act of 1937 (42 C.s.c. See. 14371) as amended, provided that
12 Gov C;
Bcglflfllng:n 19n,
italICS indIcate ch~llge~ ur J,1(JlrloJls .., l[HjIC,H~ omls"ons
* 1091
17
S 1091
C;OVER!'iMECiT CODE
lhe housing aSsiS1JIlcC payment contract was In existence before Section ] 090
became applicable 10 Ihe o!ticer and will be rencw cd or eXlended only as 10 Ihe
exiqmg tenant. or, 111 J junsdlction in \vhlCh the rental vacancy rate is less than
5 percent. as to nev,' tenants in a tllllt pre\'](lUS]Y under a Section S contract. This
section appl1es to an} per<.;on who became a public official on or after Novemher
I. 1986
(13) That of (:j person recei\'ing salJry, per diem, or reimbursement for expenses
from a government cnli!)"'
(14) That of a person owning less than 3 percent of the shares of a contract-
ing party that is a for-profit corporation, prol'ided that the ownership of the
shares deril'ed from the person '5 employment with that corporation.
(e) ThIS see lion IS nol applicable 10 any officer II1lerested In a contraCI who influ-
cnces or atlempls to II1tluence another member of the body or board of which
he or she is a member to enter into the contract.
(d) The willful lildure of iln olficer 10 disclose Ihe lael of his or her inlerest in il
Contract pursuilnl 10 Ihls seCllon is pUlllShable as proVided in Seclion 1097. That
\'io]atlOn does not void the contract unless the contracting party had knc)\,vledge
of the fact of the remote Interest of the offIcer at the IJrne the contract was
executed
Amended S:ab 20(1< cil "01 S I (Sn ],~5;
Cross Reft'r{'l1rt'~:
"RcmOIL: :n[ue,1 to J:l~!lIde persolls ,'lIh hn":lLldl Inleres! 10 COiltraci 11.1Lkr spcuticJ ~C}l]d:l~om (;0\ C
!; j()91t;
Collateral Rderenres:
Anorney GCI1t"n/ '\ O(lJrlIOI7\
Pursuant [0 ',he "remote mItre,," exU~f'llCJil ut GllV C ~ I091(bJ(1 <! CIty council !Tl,H grant funds to a
nonprofit iJ)fjwrilllOn. pro\ IdcJ IhJ! ~he newiy cl<:ctcd counCil mnnber Joes nil! pJ.I1lUpiltt 11] the maklng (1j
the grants ;lrJ dl"L]()~eS here !1'1;mClilllfllerC,,[ HI the grants il' the eJt) counCil. dnd the Interest IS !lOll' In the
cuunClr.'- OftiCl;1i rCL'CHds SS Op, Cai Au.\' Gen 191
A elll coullul lTlay n(\: (.nntJnue to excc:utt: ,In eXtCI1,"IUf] of a nmtrdct 1.1.'lIh a COll<,trUUlDn u\rnp,ln} to "nOI~l>
pw()f' homes nC'-!i J city Jlrport Ij th~ compM1Y's archltecturJI subcontractor IS the tirm ov,neJ and mJnaged
by d newly elected City COL:J1Ci] rnembn ';\::11 [huuph the hrm hilS been the Jrchi(ec:ural subcoll1rJc:(ur of (he
pJ0je;;( for more than live \(,d[', ~U[ the McljJteclLnal ~llb,\mtrJ;;:or tor thIS pJI-:lculJr cons[ructIOn Lompany for
the pa\t thee yeJts bS Ops Cal Atl~ (.iCll ]--:'6
A C:[V coullClI rn~y nOI ('I1ter IIIlO J pL:nlJC works Lontract \\ Itb a prime CO:l[rJL1u[ Iliho IS [he I()v,es[ bidder lor
the ptuJec:l If the cr:y's ma:ur IS an o!1icer, shareholder, ;Jncl employee of J listed Suhc()lllractor o( the PfllT,C
COf1[rJClor and the melyor hel, not heer; J SUppllC! c,j' good, ur seJ\JCe~ [0 the pr;me CunlrJc[or for allc~lq file
:-ear, pnor to hiS ClcLlIU:l to office 8( Ops ClI A[[y Gen ] 18
S l09J.3. Inapplicabilily of Section 1090 as relating to contract or grant
made by county children and families commission
Section 1090 shall not apply to any contracl or granl made by a counly children
',nd familIes commIssion * 'I' * created pursuanl to the California Children and
Families ACI of 19n "* (D1\ISIOn 108 (eommencmg With Seclion 130100)
of the Health and Safety Code), except where both of the followmg condlllOns
are met:
(a) The conlract or grant directly relates to services 10 be provided by any
member of a county children and families commIssion Of the entit)-, the member
represents or finanCially benefits the member or the entily he or she represents.
(b) The member fails 10 recuse himsell or herself from makmg, parllcipatlng In
making, or In any vv'a}' attempting to use hIS or her official posltion to influence
a decision on the grant or grants.
Am~ndcd Stal<: 2002 eh 664 q K8 (AB 3034)
'\me-ndme-nls:
2002 Amendment: l\rnr:ndd the in[l()dCl~l(lr:- cl:1l1~e r.: 1,li Jekllflg the comma after "cnmrnlssilm" (2 deJet-
18
l::kgillr;i:.."-,niCJ<F2
lla!i(\ Ir"k.:ll~ ,."
GOVERt-i\Il
ing the commJ
'Cockl"
S I09J.4. "
contract UJ
(a) As useel
a financial]
(1) The age
109 a popu!
10 Section ~
(2) The cor
(A) The rna
Ihe need f(
contract \vi i
would have
alternatives
(B) The a(
detenTII ned
exceeding
public IOSp'
of appraise
(3) The per
the distnct
(4) At a pu
ten documt
repair serv
contract IS
the contrac
(b) ]f a p
paragraph I
subdl visior
Addd Stats 2(
S 1092. A,
1. In General
An action \(
comes Wl1hlll t
S 1151.5. ,
(a) In ad,
employee
ment fm t
family, or
charge ma
(b) A pub.
following
(1) Paym.
,wing accounts
:iCCounts of other
accounts, require
J3 \' Ii or cenificate
,he prOVisions of
J subscnbes such
S 10 any matenal
I thereof shall be
em! Code of this
,. .~2C E '. ::.J
:'-":J n ~ \, or c. r',
, ;~:i-I(trs :0 .'Tla.,:'c
s ;C:' :!S c f:,~!:s
lebtedness
h shall not pay
~le State, county,
c.sl'erred contrary
IC moneys being
'out to be setiled,
is of this micle,
. ment, and cause
'Ion. If judgment
llsbursing officer
ffida viI had been
GENERAL
~ 1097
Historical Derivation;
Fonr,a Pol C 9 926. as a.rnended Code AmdlS 1873-74 ch 610 S 26
S 1097. Penalties
Every officer or person prohibited by the laws of this state from making
or being interesled in contraclS, or from becoming a vendor or purchaser
al sales, or from purchasing scrip, or other evidences of indebledness,
including any member of the governing board of a school dlStricl, who
willfully violales any of the proVIsions of such laws, is punishable by a
fine of not more than one thousand dollars ($ I ,000), or by imprisonment
In the state prison, and is forever disqualified from holding any office in
Ihis state.
Enac:ec S!JIS 19.:i3 Cl ~~4 ,~:TJcncd S!J.:s 1955 ch ! :259..j S:JIS 1976 ch i iJ9 9 5-1 5 open.
',\C J:..:.- I 1977
Amendments:
1955 Amendment: .Addcj (I) v.1]f;~:::.' be !.:: re ''':cIJlt's' J.nC' (2) Includln; :lLl:_
I.1l'Tlber of the go<.enlr,~ :oJJd c( a sc~ccl C;S::iCI
19"'6 .-\mendmenl: Delele.: lei )( ,71C'~e 1.~Jn ~'t.' >t.':.:...,.,:> J:'!t',' q:,:e ~;-.)cr,
HlstOriC31 Derivation:
,'d) FOn-;lO Per, C 97:, as enac!t.'d S'.ill" S72
',b) S:J:s 18.52 ch 3: 96
c) S:J:S : 35, ch I'c ;; 3 J
Cross References:
Be' n't.'~t.'qt.'~ ~'cn!r,"~I, s~:t.' s: p~::bsi..' IT,J:::k 1:-1 oif:clJI ()pc.~-:, pruh;c::cu Ge'l.
C : C90
Punlsr,mc";','. cl Oil:c>;, V,~,'s'JJn: I,:.; ',~~!s St'C'.!CC, fer '...,.I[l..;li;. LJ:llr.g (0 d:sc~(Jst.' Iii c()r,:rJci
Go'. C 9 le9\
u.;,p!iullon of ScCeW:". ~or (J:IJ~e ,0 d,sclose ~dCI c:- rt",l):c iniacs: Gov C ) le9:
Lr,S~tCi~t.'d felor'f pun!sh:T1t.'n( Pen C ~ is
SL:pcnnlecden( c~ Slale PrHitl'"'.,g. 1:lle~C's( :n ccr,lrJCI c':f",ncC:ed w::,h o~r~ce prohJb:'.d
Pen C ;; 99, :00
Collater::!! References;
\\"lkl~&Eps!t.'ln,Cr.r.-:r,~,ILJ''''(]cd\;}W lD6912!": 1=19,13:S.=!]~
La..., Re'.:el'i ,-irllC/f5
CanAle! of i:lrerest [n publiC cortnelS [n CallfornlJ ~ Cal LR J.55
Inleres, of pubi:c officers In COnlJ3CLS prohJbl!ed by law, 28 SCLR 3J5.
Tempdlion and tradition In CaJ;fOmJd School Board 5 Sian LR 61
NOTES Of DECtSIONS
C:;tllta:: r'cGnded upon SLJ.:U[C poncu,'~l.n.g p<:':',~ly
::;r de IS vOid even L>-:Ol;gh "uch "w'.u:e does r.C!
pronCl.;nce I[ VOid nor expressly ptch;bll II, B-:rXJ v
Wcod.....arc (1899) 125 CaJ 119,57 P 777
SecIJcr. not unc:=r<J.Jn vague or Indefinite P:=opk v
Darl:1y (1952) \14 CaJ ....pp 2J -112. 250 P"2j 7-13
SecllOn nOI sub.lcel (Q al:Jck for flJlure 1O requ:.rt' a
s~ec:,~c Inlenl People v Darby (1952) ll-l Caj App
2d 412, 250 P2d 743
School tnlS[ee 15 a pubiJC offic~r wil1'Jn lhJS :.ecIJon
People v Darby (1952) 114 CaJ App 2d 412, 250 P:1d
743
TllJslee of a ~c:amatJon, Aood control, swamp lar:d.
>..Jl"JL'L--V or kvee distnct is either a S[Jte or ~OU11ry
cff:ccr'~IL':n l'11S scellOn Peop:e y Da;-by (1952) ll-l
(ill .--\pp 2J 4 t 2. 250 fY:d 743
1
I
. Officers."' as used In seeLon. refers onJy [0 ap-
pOlr.;ed or e!eued publiC officers of Y'a.nous SUOOJYI-
Slcns of Slate, as disl:ngwshed from mue employe!."s
L'lereof Cleland Y Super.or Coun of \kcdoccno
Ccunly (19~2) 52 Cill I~pp 2d 530. 126 P2d 622
S!."Cllon cOnc,l:I'JIJonal Peopk v Darby (1952) :!-.I CJ.l
App 2J -.112, 250 P2d 7~J
63
Section
87102.
87102.5.
87102.6.
871028.
87103.
87103.5
87103.6.
87104 to
POUTICAL REFORM
Title 9
Article 1, proposed by 1nirialive Measure, was approved by rhe
eleclors al rhe pn'mary election held June 4, 1974, elf. Jan. 7, 1975.
Additional requirements; remedies.
Legislative members; use of poSltion to inf1uence governmental decisions;
financial interest; remedies.
Nongeneral legislation; definitions.
Elected state officers; use of position to influence gnvernmental decisions;
financial interest; remedies.
Financial inrerest in decision by official.
Retail CUStomer of business entity doing retail business.
Persons retained or employed by stale Or local governmental agencies;
payments made to defray costs 10 process appljcations, approvals, or other
actions.
87106. Rejected.
Law RevIew Commenlarfes
Administrative adj:..JdlC.3lion of air poJ)urion
disputes The work of air pollutIon control
dIstrict hearing boards in CaJU"ornia Kenneth
A. ManasTer (1984) 17 U.CD,Law Rev. Jl17.
Legislators as private altomeys: ,\;eed for
legislative reform (;983) 30 U,C,LALaw Rev
1052.
PO]iliwJ Refof";:"l A~'f: Greater acces..s to ini.
tIatlve process. Roger Jon UJa;T,ond. Peter R.
l..1brary
Municipal COrporations ~23:
Officers and Pubk Employees ~ 11 0
Slales ~95
\\'E.STI.A W Topic ,''';os 268. 283, 360
diDonato, Patrick 1. Marley and PatriCia V'
Tuben. (1975) 7 SoUL1Western LR 453
Proposition 9. Joanne Garvey and \"igo
:\Ie)s.e::, Jr. (1976) 51 S BM J. J98
Ties lb: bind: Conflucts of interest in unl-
verSi(Y'Ir',CUSL'}' Jinks (1984) 17 U,CDLaw
Rev. 895
References
CIS M>JnJclpaJ COr'?O:-a!Jons 9 988
CJ S Officus and p>";b.':c Employees 99 J 97
:0 204
CIS Stales 9 156
~ 87100. Public offjclals; state and local; flnanclal lnterest
No publiC offlCial at any level of Slale or local governmenl shall make,
participale in making Or in any way attempl to use hiS offiCial pOSJlion to
inlluence a governmenlal decision in which he knows or has reason 10 know
he has a finanCIal interest.
(Added by lnr<lallve Measure approved by the eleclors lune 4.1974. eff. Jan. 7, 1975)
Forms
See \\'esr's Ca:Jornia Code Forms, Governmenl.
Cross References
Commercial ;alman nshlng review board. IJmlled exemptiOn from 1'\" 5edlon. see F,,'\ & GC
9 8245
Code of Regulation! References
Academic deCisions, see 2 Ca!. Code of Regs. 9' 18705.
Conflict of interesVunlawfuJ activiry, ~e 2 Cal.Code of Regs. 9' 1604
DefirutioIl5, see 2 Cal. Code of Regs. 9' 18700.
Effect on publJc generally, see 2 Cal. Ccx1e of Regs. 9 18703.
Malerial finanCIal effe..:l, su 2 CaJ. Code of Regs. 9 18702.
262
-
"
i
,.
.;
COlllt
Ch. 7
i
r
,
i
I,
Souro<
Sr-udcn'
Def"
See \"I
AUorne.'
Board.
~ch
Land tn
LoaU go
Purpo.e
RedeH/c
Tape re-c
ValJdJl}
I. ValJd
The Pe-
1:1 tereSl ~
dis<:loSLJ~
aClual S-G
bioad in
U :leG:-. s: ~.
of pnvac
and C;JS:C
Rptr, J02
2 Pur-pc
Wnole
1974 IS
partlCJpa',
may no: t
'-"-'auld IlK,
bv who:T, t
(t977) J.39
3, Board~
L'ncamp
bers of Cor
niz.ation ar
PollticaJ F:
periodic fll
'>'>i!hstandi!
missIon '>'>;-
investigallo
acti...itJe.5 a'
bec.a USe C l
'.Vim power
cies wruch
busines..s.es,
was 001 ex(
of intere.sl (
bers. C:)f:",~
men! Organ
37,\,Pt.2C,;
(ReguJatlOns oflhe Fair Political Pracllces Commission, TllJe 2, DIvision 6 of the CaJtfOlTLl3
Code of RegulatJOos.)
J 8702 J Determining \\Ineo a Public OfficiaJ is Using or Al1emp!ing 10 Use Hjs./}-J:er Official
Posn;on 10 lnlluence a Government.aJ DecIsion
(a) WIL'o regard to a govemmenlal decision which 1$ wlthin or before an offiCial's agenc;.
or an agency appOinted by or subject to the budgetary cor,tIol of his or her agency, the offiCial 1$
anempllng to use hiS or her official poSItion to influence the deCision ir, for the purpose of
intl:.Jencing lhc deCision, the off:clal contacts, or appears before, or otherv.t1se anempls 10
Influence, any member, officer, employee or consultant of the agency. A!1emplS 10 iniluence
Include, but are nOl limited 10, appearances or conLlcls by the officjal on behalf of a busir,ess
enw)', clienr, or CIJS!Or.ler
(b) \\-Il.}, regard to a go\er.'.menta! deciSion v.bjch is ....ithJn or before an agency nOI
covered by subsec~ior. (a), [he officia! is aiTempting 10 use hiS or her officla) pOSI~:on :0 :r~'1uence
the decislen If, for the p:_Hpc5e ofJn.f]~enCing the decl5iOn,t~e O[Ticlal acts or p~Or1S to act on
behal(of, or as (he re,cresen:3t:\e of, his or her agen~y to a.,y i:lember, officer, eTlpIoyee or
consu1tar.t of an agenc:, Such a::t:or:s lnc:~de, bL1! a"e not JUT:::ed (0 the use of offic:a! sraLO!;t'i:
~- .Al.ithon~, Section 83 i 12. Go....ernmer,t Coce
Reference Seet:or, 87:00, Go '..e:-TLlT,en I Coce
l::lilim
(I) )\.'ew section ri!ed 10-] '1.38, ef~ec~,I":' !h];~:e(h da) thereafter
(2) Re;::,ea]er M.d f1e'w seCllon flied 11-23-98, effec!i'.e lJrcn fii::lg
(CES 3/99)
] 87023
(RCf:uJat:ons of the Fan Po!n:ca: PractIces CommJSSIOn, Ti:Je 2, DIVISion 6 of the Calif OffiLl
Code of Regu!atJOns )
187024 ExCeptlOi,s
(a) Makjng or Participating in makIng a go'.err.mer11aJ decJslon shalJ no! lnclude
()) Actions of public officials WhlCh are solely mirLislenal, secretarial, manual, or
cJencal;
(2) Ap,c:earances by a publiC offiCial as a mer;!ber of the general public before an agency
in the COurse OfllS prescribed gover:1IT,entaJ funCllCn to represen! hlmseJfor herse!fon matiers
related solely 10 the official's personallnteres!s as defined In TIlle 2, California Code of
Regulallons, section! 8 702 4{b)( I), or
(J) Actions by publ:c offiCials relating:o their compensaiion cr Lle terms Or conditions
oflhelf employment or cuntJ'"acl In the case ofpub!ic officials wr.o are "Con.suILarl:s," as defined
i:-,. Title 2, Callfo",:a Code of Regulatlor.s, secllon 1870:(a}l)), t.h.;s ln~:udes actions by
se!"Y'lces 10 lhe agency, so long as they ail' aCllng In L'le:r ;':I:\'a:e ca~aC:lY
COnSL:llanlS reiallng:o I_he :C~S or condl!lons o~tJ-Je CCnlrac! pL1TSL1..3.n: to v.hich they provide
of an agency covered by :1'.3: subsecl:on If the o:'icla~
o(fiCia..: IS not ar:e.-:lpt:,.g 10 use rtJs O~ her offiCial POSII::);] 10 tnr,u~n(e 3 gJve;,'lment.aJ decIsion
(b) ~orwl~~s!Jndl~g T;:!e 2. CajlfortllJ '-..'r)'JC of Reg'JJJ1ICr:s, seCll,~". 18702:;(3). 3.;,
lr.clLOde, CJl are .'101 IJr71Hed :0
c., a :-:la~er wl-;ecn is rela;ec iO r.ls or her persc:lal intereSts /<"':1 or1iclai's "per5oml ;nleres!s"
agenc.y In the coc;:st: of ;Is pre5cnc-ed govern.."en:al f1.....:Jctlon sole:} 10 repesent ru:-Tlself or herself
(I) A~pe3Js In the S~'7H.' r.1Ml.l,er as a,n.y other rT.e.'Tlbe~ C{tt,e gener:>.1 publiC befo~e an
., -,
Or t:e, 1:1lJT;ed:ate [3.;'7111)'
fA) ;>'..01 l.r.lt,esr In real p::-;::er.y wh:ch is \.',r.O:I: o''''-;;ed t,! t!"-.~ off":claJ Or mer.Jb:'-rs cfhl5
fam;l}
(B) A bUSiness ent:!) ......hci!y o"~T;ed b! lr.e ofT:c:a.: 0, i7lCIil8e,s of h!s o. her Imrr~ed:a!e
(C) A bL:slr.ess erH:ry over ......hlch the offic:a: ex('r(.lses sc:e: dtrect:ot1 anc cor.tni. or ovcr
......hJCh the o{fic:al a.,d his or her spouse Jomtly exerCise sale direction a.rid cO.'1lrol
(2) COrn.r.Jun:ca:es v.l:h [he gl."neral publiC or the press
137024
(CEB 8'99)
(J) ~:ego1:ates his or her comper.sJLJon or the lerms and condllJOn5 of his or her
er.lpio) men[ or conlract
(4) Prepares dra.....1I1gs or submIssions ofan archllecru:aJ, engineering or similar nature to
be used by a client in COrtfleclJon v.r;lh a proceeding before any agency However, Uus provision
applIes only if the official has no Olherdire:t oral or .....Tinen contact v.rith tbe agency with regard
[Q the client's proceeding cefore the agency except for necessary contact with ager,cy staff
conccrT.lng the processing or evaluation of the drav..'ings or submissions prepared by the ofliclal
(5) Appears before a deSign or arehneclural revIew comminee or similar body of.....hich
he or she is a rr.ember to present drawings or submiSSIOns of an archjlect"uraI. engineenng or
SImilar nalure v.nlCh the offiCial has prepared for a client iflhe foilo.....,ng three cnteria are met.
(A) The review comrr.rrree's sole function is [0 revIew architecturaJ or engineering plar:s
or deSigns a.,'ld :0 maKe recorr_rnend31ions in that instancr: concerning those pians cr designs to a
piarJ',I:-;g C(HT~rr.ISSlon or other agency,
(3) The ordinance or oth'r prOVision of Jav. requ,res that the review COmmlt1ee Include
J.r:hllects. e::gir.eeiS or persons in ;e!il!e~ prcfesslOr.s, a.nc the or.icial was appointed 10 :be body
to fi.,lfill [hiS re::;'..Jirer:le;;t, and
(C) The offic:alls a sole praclH:oncr
(c) A:acc:nlc Decls:cns
(I) E,(c~pt as provided In subsectIon (c)(1), ne:~~r diS'~~OSlJ;e of C::'1J.:iClal:nlerests 'Jor
disq'JJ!lfiC;J!I.:::n is required under Goverr~';jeil: Code seC1:Jns 87:00, 87.301. or any Connie! of
Inlerest Coce, In COr.neC:lor, ',A,I:h
(A.) Teac~:ng Ccclslcr.s. Ir.c:uj~r.g lhe se~ecl;on by a :e.lCher ofbook..s or other
ed'JC3tlonal matenals (or !.lse WIth;;] hiS or her own school or ir,Slllu(lon, and otJ-.er deCisions
lilcldentJI !o leaching,
(B) DeCiSions :nace by a perscn wr.o has :eachlng or rest3Jch respcnslbil:lles al an
InstiTUtIOn of higher eduCatiorJ 10 pursLJe personally a COllise of academiC s:udy or research, to
apply for funds to fUlance such a proJect, to allocate fina.'iciaJ and malenaJ resources for such
academic srdy or resea..-ch, and all deCISions relating 10 the manner or melhodo:ogy \l,lth which
such study or research .....JJI be conduc:ed Provided, however, U,at the provlslollS ofulIs
(
.2-
187024
(CE88/99)
l
subseclion (c)(I)(B) shalJ nOI apply \.liith respect [0 any decIsion made by the person in the
exercise ofinstitulion- or campus-W'ide administrative responsibilities respecting the approval or
review of any phase of academic research or study conducted at thaf institution or campu.s
(2) DISclosl.ife shall be required under Government Code section 87302 or any Conilict
of lme,est Code tn connection .....lth a deCIsion made by a person or persons at an institution of
higher education ""lth principal responsibility for a research project to undertake such research, If
i! IS to be funded or supported, in whole or in par1, by a conlIact or gran! (or other funds
earm~ked by lhe donor for a specific research project or for a specific researcher) from a
nongovernmental entl!)', but disqualification may not be required under Government Code
sections 87100, 87302 or any Conflict of Interest Code in connection .....lm a....])' such decision if
the decision is substan[!'.ely re'.iewed by aJ'. independent COmmtr:ee establIshed .....ithlo '-he
tr.5U!utlon
~: Aut.hor~t)' SectIOn 83 I 12, Go\-ern.'l',~:-'ll Code
Refe:-ence. Secllon 87100, Go'.ernrr;ent Code
~
(.1) ;--.,'ew sect:on flied 10-1 i.88, effectl\-e L'";li'1leth day lheieafler
(:) Repealer a.'ld ",ew seC':::Jn flie::! 11-13-98, effective Upon f:llng
187024
(CEB 8(99)
FPPC
Bulletin
December 2003 Fair Political Practices Commission Volume 29, No.4
_..._.._-_.~-
IN THIS ISSU E:
-----
New campaign manuals
2004 meeting dates 2
Proposition 34 Q & A 3
What's new on the web 6
Segmentation process 7
Enforcement summaries 8
Litigation report 13
Clerks' Corner - SEls 16
Legislative Update 21
Advice summaries 23
Lobbyist ethics course 35
---~.~--
Toll-free Advice Line:
1-B66-ASK-FPPC
Public officials, local govern-I
ment filin9,officers, candidates,
lobbyists and others with obliga-
tions under the, Political" Reform
Act are Elncouraged to call toll-
free for advice on issues includ-
ingcampaign contributions and
expenditures, lobbying and con-
flicts of interest. FPPC staff
members' answer thousands of
calls for telephone advice e,achl.
month.
I
New Manuals Will Assist
State and Local Candidates
FPPC staff members plan to present two new campaign disclo-
sure manuals for approval at the January 2004 meeting of the Fair
Political Practices Commission.
The state and local candidate manuals, developed as part of a
major FPPC staff project, will be made available in final form on the
FPPC web site - www.fppc.ca.qov- soon atter Commission ap-
proval.
Because many of Proposition 34's provisions affect state candi-
dates only, FPPC staff developed two separate manuals:
. Manual 1 is for state candidates, their controlled committees,
and primarily formed committees for state candidates
. Manual 2 is for local candidates, superior court judges, their
controlled committees, and primarily formed committees for
local candidates
Both manuals are comprehensive in scope and designed to assist
candidates for public office in meeting the obligations set by the Politi-
cal Reform Act. Among the subjects discussed in the manuals are
candidates' and committees' recordkeeping requirements, definitions
important to campaigns, reporting obligations, and restrictions and
prohibitions.
Once the Commission has given final approval to the publications,
these manuals will replace the current FPPC "Information Manual A,"
"Information Manual B," and the 2003 addendum. Candidates and
other interested persons will be able to download, print and distribute
the manuals from the web once they are posted.
(Cuntinued on page 2)
Page 2
FPPC Bulletin
December 2003 Volume 29, No.4
Californ ia
Fair Political
Practices Commission
Commissioners
Liane Randolph, Chair
Philip Blair
Sheridan Downey III
Pamela Karlan
Thomas S. Knox
Commission Meetings
Meetings are generally
scheduled monthly in the Com-
mission Hearing Room, 428 J
Street, 8th Floor, Sacramento.
Please contact the Commission
or check the FPPC web site,
htto:l/www.f{JfJc.ca.Qov. to con-
firm meeting dates.
Pursuant to Section 11125 of
the Bagley-Keene Open Meeting
Act, the FPPC is required to give
notice of its meetings ten (10)
days in advance of the meeting.
In order to allow time for inclusion
in the meeting agenda and repro-
duction, all Stipulation, Decision
and Order materials must be re-
ceived by the FPPC no later than
three (3) business days prior to
the ten day notice date.
The Commission meeting
agenda and supporting docu-
ments are available free of
charge on the Commission's web
site at htto://www.fooc.ca.Qov.
Additionally, . past and future
agendas are posted on the web
site.
...Draft manuals available
(Conllnuedjrom page 1)
The manuals are currently posted in draft form on the web site. To
see the draft manuals, go to www.fooc.ca.Qovand click on the link in
the "What's New" column on the right side of the home page.
FPPC staff members are continuing their work on additional new
manuals and addendums.
An interested persons meeting on the new state and local candi-
date manuals was held on November 19 and resulted in a number of
comments.
Future Meeting Dates
The Fair Political Practices Commission is currently planning to
meet on the following dates during calendar year 2004:
Wednesday, January 14
Tuesday, February 10
Monday, March 15
Thursday, April 8
Thursday, May 13
Thursday, June 10
No July meeting
Thursday, August 5
Thursday, September 2
Thursday, October 7
Thursday, November 4
Thursday, December 2
Meetings generally begin at 9:30 a.m. in the FPPC's 8th floor hear-
ing room at 428 J Street, Sacramento, but check the FPPC web site
regularly as dates and times can change.
Interested Persons Meeting
An interested persons meeting will be held on January 13, 2004,
to seek public participation in a study of proposals to merge
Government Code section 1090 and other statutory and Com-
mon Law conflict of interest provisions into the Political Reform
Act. Also scheduled for that day is an interested persons meet-
ing on proposals to amend the conflict of interest!
disqualification regulations relative to general plan decisions.
Check the What's New section of our web site at www.fppc.ca.
qov, for the posting of an agenda and the final details and
times of the meetings.
The FPPC Bulletin is published by the Fair Political Practices Commission
428 J Street, Suite 620, Sacramento, CA 95814
Internet: ~
Toll-free advice line: 1-866-ASK-FPPC (1-866-275-3772)
Telephone: 1-916-322-5660
Enforcement hotline: 1-800-561-1861
The Bulletin is published quarterly on the FPPC web site. To receive the Bulletin bye-mail, use our
web site Mailing Lists tool at hit ://www.fc.ca.ov/index.html?id=408
Page 3
FPPC Bulletin
December 2003
Volume 29, No.4
Proposition 34 and the
March 2004 Elections:
Answering Candidate
Questions
By Kevin S. Moen
FPPC Political Reform Consultant
The primary election for state legislative of-
fices will be held March 2, 2004. In previous
bulletins, the FPPC answered questions about
Proposition 34 concerning Small Contributor
Committees, the Voluntary Expenditure Ceiling,
transfers between a candidate's campaign com-
mittees, and affiliation issues in relation to contri-
bution limits (go to "Prop. 34" on our home page,
and see Questions and Answers from the May
2001 and November 2001 editions of the Bulletin
under "More Information"). On January 1, 2003,
the contribution limits and voluntary expenditure
ceilings for state candidates were raised. The
following questions and answers deal with these
changes, and many other important issues:
General Issues
Q.
I'm running for a legislative seat. When
may I start raising funds for the general
election?
A:
Prior to raising or spending money for
any election, you must file the Candidate
Intention Statement (Form 501). Once
you have sent this form to the Secretary
of State, you may raise funds for both the
primary and general elections associated
with the specific elective office you are
seeking. If you are unsuccessful in the
primary election, however, you must re-
turn those contributions received ear-
marked for the general election to your
contributors, less the cost of raising and
administering the funds. Although you
are not required to do so, you may estab-
lish separate bank accounts for the pri-
mary and general elections.
Q.'
If I am unsuccessful in my election bid,
may I return my contributions to those
who contributed to my committee?
A:
Yes, you may return contributions to your
contributors. However, you may not re-
turn contributions that you made from
your personal funds to your own cam-
paign, except those contributions that
were reported as loans. Remember, a
candidate may not have outstanding
loans totaling more than $100,000 at any
one time per campaign for elective office.
Q
I established a committee to run for state
legislative office in 2002. May I use that
committee to run for the same office in
2004?
A:
No. You must file a new Form 501, cre-
ate a new committee, and use a separate
campaign bank account for the new elec-
tion, even if you are running for reelec-
tion.
Q.'
As a candidate, what information must I
include in a written solicitation for contri-
butions?
(Continued on page 4)
Page 4
FPPC Bulletin
December 2003
Volume 29. No.4
...Proposition 34
(Coll/!/lued from page 3)
A: Candidates and their controlled commit-
tees must identify by name the particular
controlled committee for which the contri-
bution is being solicited. In addition. can-
didates for state elective office must iden-
tify the specific office for which the contri-
butions are solicited. (See regulation
18523.1.)
Contribution Limits
Q. What are the contribution limits for candi-
dates for state legislative offices?
A:
A candidate for state Assembly or state
Senate may not receive more than
$3.200 from a single source per election.
(See regulation 18545.) (The primary
and general elections are considered
separate elections for purposes of the
contribution limits.) However, a Small
Contributor Committee (see Government
Code section 85203 for a definition) may
contribute up to $6.400 per election.
There is no limit on how much a political
party may contribute to a candidate. nor
is there a limit on the amount a candidate
may contribute from personal funds to his
or her own campaign. (A candidate may
not have an outstanding loan made from
personal funds of more than $100,000 at
anyone time per campaign for elective
office. however.)
Q.
What are the contribution limits for local
candidates, and state or local ballot
measure committees?
A:
The Political Reform Act does not impose
limits on local candidates. nor on state or
local ballot measure committees. How-
ever, many cities, counties. and special
districts have their own limits for candi-
dates. Contact the applicable jurisdiction
to find out if there are limits. and what the
limits might be.
Q: If, as a state candidate, I receive a contri-
bution that exceeds the state contribution
limits, what should I do?
A:
If you receive a monetary contribution
that either on its face or in the aggregate
exceeds the limits. return it prior to de-
posit or negotiation within 14 days of re-
ceipt. Deposit or negotiation of a mone-
tary contribution that exceeds the limits is
a violation of the Political Reform Act. If
you receive a non-monetary contribution
that exceeds the limits, within 14 days re-
turn the non-monetary contribution, its
monetary equivalent. or the monetary
amount by which the value of the non-
monetary contribution exceeds the limits.
Transfers and Carrvover
Q: I ran for a senate seat in 2000. I still
have funds remaining that were raised
prior to January 1, 2001. May I transfer
these funds to my 2004 reelection com-
mittee?
A: Yes. You may transfer any amount
raised prior to January 1, 2001, into your
reelection campaign bank account with-
out attribution.
Q: I ran for assembly in 2000. I transferred
$10,000 in funds raised prior to January
1, 2001, into my 2002 reelection commit-
tee. My 2002 campaign account has al-
ways had a balance of $10,000 or more.
May I now transfer $10,000 from my
2002 account to my 2004 senate com-
mittee without attribution?
A: Yes. as long as the amount transferred to
the senate committee account does not
exceed the lowest balance in the 2002
committee's account following receipt of
the unattributed transfer. (See regulation
18530.2.) For instance. you transferred
$10,000 from the funds remaining in your
(Conll/lued Oil page 5)
Page S
FPPC Bulletin
December 2003
Volume 29, No.4
fCo'1rlmu:djrom page 4)
2000 committee to run for reelection in
2002. If the balance in your 2002 ac-
count has never been less than $10,000
at anyone time, you may now transfer
without attribution up to $10,000 into your
new 2004 senate account. Another ex-
ample: You transferred $20,000 from the
funds remaining in your 2000 committee
to run for reelection in 2002. If the lowest
balance in your 2002 account was
$5,000, you may transfer no more than
$5,000 to your new 2004 senate cam-
paign account without attribution.
Q: I ran for assembly in 2002. I plan to seek
a senate seat in 2004. May I transfer
funds remaining in my assembly cam-
paign, all of which were raised after Janu-
ary 1, 2001, to my senate campaign com-
mittee?
A Yes, but since the funds were raised for
an election that took place after January
1, 2001, and you are seeking a different
office, you must attribute the contribu-
tions to your contributors using a LIFO or
FIFO accounting system (see the ques-
tion and answer series on transfers by
clicking onto "Prop. 34" on our home
page, then click onto "November 2001"
under "More Information," then go to
page 3).
Q: I ran unsuccessfully for the assembly in
2002. May I carry over any remaining
funds into my committee for assembly in
2004?
A: Funds remaining in your 2002 account
must have been transferred to a new
campaign bank account by the end of the
reporting period following the day of the
election. In other words, if you lost the
2002 general election for assembly, any
funds remaining in the account after of
December 31, 2002, became surplus.
Surplus funds may not be used to seek
elective office. (See regulation 18537.1.)
Q.
I ran successfully for the assembly in
2002. May I carry over any remaining
funds into my assembly reelection com-
mittee in 2004?
A:
Yes. Since you were successful, any
funds remaining in your 2002 campaign
committee are not "surplus funds." In ad-
dition, since the committee receiving the
carried over funds will be established for
a subsequent election for the same elec-
tive state office, you may carry over any
amount in the 2002 committee without
attribution. (See regulation 18537.1.)
Voluntarv Expenditure CeilinQ
Q: What is the Voluntary Expenditure Ceil-
ing?
A: When a state candidate completes a
Candidate Intention Statement (Form
501), he or she must accept or reject the
Voluntary Expenditure Ceiling (VEC). By
accepting the VEC, a candidate for as-
sembly agrees not to expend more than
$425,000 for the primary election nor
more than $637,000 for the general elec-
tion. Candidates for senate who agree to
the ceiling must not expend more than
$637,000 for the primary election nor
more than $956,000 for the general elec-
tion. (Not all expenditures made by a
campaign count toward the ceiling. See
regulation 18540.)
Q: Once I have accepted or rejected the Vol-
untary Expenditure Ceiling, may I change
my mind and amend the Form 501?
A: The only time you may change your des-
ignation is if (1) you did not exceed the
VEC during the primary election, and (2)
within 14 days after the primary election,
you amend your Form 501 to indicate ac-
ceptance of the VEC for the general elec-
tion.
Q: If I accept the Voluntary Expenditure Ceil-
ing for the primary election, may I reject it
for the general election?
(Continued on page 6)
Page 6
FPPC Bulletin
December 2003
Volume 29, NO.4
...Proposition 34
(Conlinuedfrom page 5)
A: No. Your acceptance of the VEC per-
tains to both the primary and general
elections. The VEC is lifted only if one of
your opponents contributes personal
funds to his or her campaign which ex-
ceed the ceiling.
Filinq Deadline
Q: Do I file my semi-annual statement cover-
ing the period through December 31,
2003, on January 10, 2004, or January
31, 2004?
A: Candidates on the March 2, 2004, ballot
must file their reports covering the period
through December 31, 2003, by January
10, 2004.
Web Site
Update
By Jon Matthews
FPPC Publications Editor
A revised fact sheet discussing revolving
door and other post-employment issues is now
posted on our web site. The publication, enti-
tled, "Leaving Your State Job? Post-
Employment Restrictions May Affect You," can
be found in the publications section of our site,
the restrictions on government employees sec-
tion, and directly at the link:
http://www.fpPc.ca.qovlindex.htm/?id=33
Around the first of the year, watch our site
for the posting of the new version of the Form
700 - Statement of Economic Interests. This
interactive document will be available in the
forms section of our site at:
http://www.fppc.ca.qov/index.htm/?id=234
Attention clerks and filing officers: For more
important information on the new Form 700 and
its distribution through our web site, see our
Clerk's Corner articles beginning on page 16 of
this issue.
Many filing schedules for committees and
candidates are available for 2004 elections. For
links to the filing schedules, go to our filing dead-
lines page at:
http://www.fpPc.ca.qovlindex.htm/?id=2 2 2
Here's a reminder that the FPPC has ex-
panded its new, automatic system for e-mailing
Commission materials, news and notices to in-
terested members of the public, the regulated
community and the media. Benefits of this sys-
tem include more timely and efficient service to
those seeking information, as well as conserva-
tion of the Commission's limited resources.
To use the system, simply go to the new
FPPC Mailing Lists page, accessed through the
Mailing Lists link at the bottom of the left hand
column of our web home page:
http://www.fppc.ca.qovlindex.htm/?id=40B
Once at the page, simply enter your e-mail
address. Choose the e-mail list or lists you would
like to join and click on the "submit" button at the
bottom of the form. You then will receive a confir-
mation e-mail for each list chosen. Reply to the
confirmation e-mail(s) and the selected materials
will be sent to the e-mail address you have en-
tered.
You also may use the new FPPC Mailing
Lists page to unsubscribe from FPPC mailing
lists in which you are no longer interested.
Please note that all of the publications and
materials offered via the e-mail system also will
be available directly from our web site.
If you have questions about the new system,
don't hesitate to e-mail or call FPPC Publications
Editor Jon Matthews at jmatthews@fppc.ca.gov,
or (916) 323-2937.
Page 7
FPPC Bulletin
December 2003
Volume 29, No.4
New Regulation Codifies the "Segmentation Process"
By Natalie Bocanegra
FPPC Staff Counsel
At its September 2003 meeting, the Commis-
sion adopted regulatory language codifying
its "segmentation process" to address the situa-
tion in which a public official has a conflict of inter-
est in one of several related decisions. The pur-
pose of the segmentation process is to allow an
official to participate in certain decisions which
may be "related" but continue to prohibit the offi-
cial's participation in decisions that are
"inextricably interrelated" to the one in which the
official has a conflict of interest.
Section 87100 of the Political Reform Act pro-
hibits a public official from making, participating in
making or otherWise using his or her official posi-
tion to influence a governmental decision in which
the official has a financial interest. In general, a
public official has a financial interest in a decision,
resulting in a conflict of interest for the official, if it
is reasonably foreseeable that the decision will
have a material financial effect on the official,
unless a particular exception applies. (Section
87100 et seq.) Where the decision in which the
official has a conflict of interest is related to other
decisions, it is important to determine how
broadly the Act's disqualification rules will apply.
Under the Commission's new regulation
18709, although an official may have a financial
interest in a particular decision, the official is not
prohibited from participating in other related deci-
sions in which he or she does not have a financial
interest, so long as the Commission's
"segmentation process" is followed. The regula-
tion codifies longstanding Commission advice that
an agency may segment a decision under this
process provided that certain conditions are met.
These conditions are:
(1) The decision in which the official has a
financial interest can be broken down into
separate decisions that are not inextrica-
"The regulation codifies
longstanding Commission advice
that an agency may segment a
decision under this process
provided that certain conditions
are met. "
bly interrelated to the decision in which
the official has a disqualifying financial
interest;
(2) The decision in which the official has a
financial interest is segmented from the
other decisions;
(3) The decision in which the official has a
financial interest is considered first and
a final decision is reached by the
agency without the disqualified official's
participation in any way; and
(4) Once the decision in which the official
has a financial interest has been made,
the disqualified public official's participa-
tion does not result in a reopening of, or
otherwise financially affect, the decision
from which the official was disqualified.
Other provisions of this regulation specifi-
cally address budget and general plan deci-
sions.
For additional information on the back-
ground and history pertaining to the
"segmentation process," please check the Com-
mission's website (htto://wwwfOlJC.ca.Qov) for
the June, August, and September 2003 agenda
materials relating to this item.
Page 8
FPPC Bulletin
December 2003 Volume 29, No.4
Meeting Summaries
tion 84200.5(d), and a semi-annual campaign
statement, in violation of Government Code
section 84200(a) (2 counts). $2,500
Summaries of actions at the Commission's
regular monthly meetings are posted on the
Commission's web site at:
Enforcement Summaries
Allstate Insurance Company Political Action
Committee and James P. Zils, FPPC No.
01/389. Staff: Commission Counsel Jennie
Eddy. Allstate Insurance Co. Political Action
Committee ("ALLPAC"), a state general-
purpose recipient committee sponsored by
Allstate Insurance Co., and James P. Zils,
treasurer of ALLPAC, committed four violations
of the Political Reform Act by failing to disclose
specific contributor information on four required
campaign statements regarding individual
Allstate Insurance Co. employees who cumula-
tively contributed $100 or more to ALLPAC, in
violation of Section 84211 (I) (4 counts). $6,000
M.D.C. Holdings, Inc., FPPC No. 03/277. Staff:
Commission Counsel Jennie Eddy and Investi-
gator III Jon Wroten. M.D.C. Holdings, Inc., a
national residential homebuilder, located in
Denver, Colorado, committed two violations of
the Act by failing to timely file a semi-annual
campaign statement, in violation of section
84200(b), and by failing to file a semi-annual
campaign statement electronically, in violation
of section 84605(a) (2 counts). $6,000
SEI Violations
http://www.fppc.ca.aov/index.htm/?id=63
See the following article for a summary of
enforcement actions.
October Commission Meetinq
Late Contribution Reportinq Violations
BMG Entertainment, FPPC No. 03/010. Staff:
Commission Counsel Jennie Eddy and Investi-
gator III Jon Wroten. BMG Entertainment a
music industry entity headquartered in NY', NY,
committed two violations of the Political Reform
Act by failing to file a late contribution report, in
violation of Section 84203(a) and by failing to
file a semi-annual campaign statement, in viola-
tion of Government Code section 84200(b) (2
counts). $5,250
Crawford Law Firm, FPPC No. 02/703. Staff:
Commission Counsel Jennie Eddy and Investi-
gator III Jon Wroten. Crawford Law Firm, lo-
cated in Des Moines, Iowa, failed to file a late
contribution report, in violation of section 84203
(a) (1 count). $1,500
Campaiqn Reportinq Violations
California Association for the Gifted Political
Action Committee and Cathleen Silva, FPPC
No. 00/671. Staff: Commission Counsel Jeffery
A. Sly and Investigator III Leon Nurse-Williams.
The committee is a general-purpose committee
sponsored by the California Association for the
Gifted. Cathleen Silva, committee treasurer
failed to timely file a pre-election campaign'
statement in violation of Government Code sec-
Dwayne Bower, FPPC No. 01/305. Staff: Com-
mission Counsel Jennie Eddy and Investigator
III Dan Schek. Dwayne Bower, a member of
the governing board of the Ojai Water Conser-
vation District, located in Ventura County, failed
to timely file a 2002 annual Statement of Eco-
nomic Interests, in violation of section 87300 (1
count). $2,000
Terry MacRae, FPPC No. 02/546. Staff: Com-
mission Counsel Jeffery A. Sly and SEI Coordi-
nator Mary Ann Kvasager. Terry MacRae, a
member of the California Travel & Tourism
Commission, failed to timely file an initial State-
ment of Economic Interests, in violation of Gov-
ernment Code section 87300 (1 count). $300
(Conflnued on page 9;
Page 9
FPPC Bulletin
December 2003 Volume 29, No.4
(Conllnuedfrom page 8)
Major Donor - Streamlined Procedure
Failure to Timely File Major Donor Campaign
Statements. Staff: Chief Investigator Alan Hern-
don, Investigator III Jon Wroten, and Political Re-
form Consultant Mary Ann Kvasager. The follow-
ing persons and entities have entered into stipu-
lations for failing to file major donor campaign
statements that were due during the calendar
year 2002, in violation of Government Code Sec-
tion 84200:
. Enrique & Megan Hernandez, FPPC No.
2003-312. Enrique & Megan Hernandez of
Pasadena, Calif., failed to timely disclose
contributions totaling $10,000 (1 count). $400
William P. Carey, FPPC No. 2003-385. Wil-
liam P. Carey of NY, NY, failed to timely dis-
close contributions totaling $20,000 (1
count). $400
.
.
Coleman Homes, Inc., FPPC No. 2003-388.
Coleman Homes, Inc., of Bakersfield, Calif.,
failed to timely disclose contributions totaling
$23,800 (1 count) $638
Terry L. Moreland, FPPC No. 2003-487.
Terry L. Moreland of Bakersfield, Calif., failed
to timely disclose contributions totaling
$10,000 (1 count). $800
.
.
C. Anthony Thomas AKA Tony Thomas,
FPPC No. 2003-490. C. Anthony Thomas
AKA Tony Thomas of Los Angeles, Calif.,
failed to timely disclose contributions totaling
$10,500 (1 count). $800
.
Bestway Disposal Company, Inc., FPPC
No. 2003-569. Bestway Disposal Co, Inc., of
Hesperia, Calif., failed to timely disclose con-
tributions totaling $10,000 (1 count). $1,500
Stanley Black & Black Equities, FPPC No.
2003-570. Stanley Black & Black Equities of
Beverly Hills, Calif., failed to timely disclose
contributions totaling $15,71522 (2 counts).
$2,35728
.
.
Gillette Company, FPPC No. 2003-576. Gil-
lette Company of Boston, Mass., failed to
timely disclose contributions totaling $10,000
(1 count). $1500
Failure to Timely File Major Donor Campaign
Statements. Staff: Chief Investigator Alan Hern-
don, Investigator III Jon Wroten, and Political Re-
form Consultant Mary Ann Kvasager. The follow-
ing persons and entities have entered into stipu-
lations for failing to file major donor campaign
statements that were due during the calendar
year of 2002, in violation of Government Code
Section 84200, and failing to electronically file
major donor statements for the calendar year
2002, in violation of Government Code section
84605:
. First Management Group Investments,
Inc., FPPC No. 2003-348. First Management
Group Investments, Inc., of Washington,
D.C, failed to timely disclose contributions
totaling $25,000 (1 count). $400
September Commission
Meetin~
Campaiqn Monev Launderinq Violations
Colin Flaherty, FPPC No. 99/783. Staff: Senior
Commission Counsel Deanne Canar and Super-
vising Investigator Dennis Pell6n. The Commis-
sion issued a default decision and order regard-
ing Colin Flaherty, the owner of Flaherty Com-
munications, a public relations firm formerly lo-
cated in San Diego and Encinitas. Flaherty en-
gaged in a pattern of campaign money launder-
ing, and campaign non-disclosure, by making
campaign contributions in names other than his
own, in violation of sections 84301 and 84300(c)
of the Government Code, and by failing to file
two major donor committee campaign state-
ments, in violation of section 84200(b) of the
Government Code (38 counts). $76,000
(Continued un page 10)
Page 10
FPPC Bulletin
December 2003
Volume 29, No.4
rClJnllnucd!ro/IJ pag!' 9)
Campaiqn Reportinq Violations
AFL-CIO No On 226 Education Fund and
Frances Arlene Holt-Baker; FPPC No. 00/377.
Staff: Commission Counsel Bill Williams and Ac-
counting Specialist Bill Marland. The committee
was a primarily formed ballot measure commit-
tee, sponsored by the AFL-CIO. Arlene Holt-
Baker was the treasurer for the Committee. They
failed to report required information regarding
campaign expenditures, in violation of section
84211, and made cash expenditures of $100 or
more, in violation section 84300 (6 counts).
$8,000
Paul F. Glenn; FPPC No. 02/705. Staff: Com-
mission Counsel Jennie Eddy and Investigator III
Jon Wroten. Paul F. Glenn of Santa Barbara
failed to file a late-contribution report, in violation
of section 84203(a) (1 count). $3,500
SEI Violations
Frederick Kosmo; FPPC No. 02/234. Staff:
Commission Counsel Jeffery A. Sly and SEI Co-
ordinator Mary Ann Kvasager. Frederick Kosmo,
a member of the California Apple Commission,
headquartered in Fresno, failed to timely file an
assuming office Statement of Economic Inter-
ests, in violation of Government Code section
87300 (1 count). $600
Thomas Janzen; FPPC No. 02/457. Staff: Com-
mission Counsel Jeffery A. Sly and SEI Coordi-
nator Mary Ann Kvasager. Thomas Janzen, a
member of the Planning Commission for the City
of Sierra Madre, failed to timely file a 2001 an-
nual Statement of Economic Interests, in viola-
tion of Government Code section 87203 (1
count). $700
Robert Watrous; FPPC No. 02/549. Staff: Com-
mission Counsel Jeffery A. Sly and SEI Coordi-
nator Mary Ann Kvasager. Robert Watrous, a
member of the California Board of Registered
Nursing, headquartered in Sacramento, failed to
timely file an assuming office and a 2001 annual
Statement of Economic Interests, in violation of
Government Code section 87300 (2 counts).
$400
Maior Donor - Streamlined Procedure
Failure to Timely File Major Donor Campaign
Statements. Staff: Chief Investigator Alan Hern-
don, Investigator III Jon Wroten, and Political Re-
form Consultant Mary Ann Kvasager. The follow-
ing persons and entities have entered into stipu-
lations for failing to file major donor campaign
statements that were due during the calendar
year of 2002, in violation of Government Code
Section 84200:
. Frederick DeMann, FPPC No. 2003-
313. Frederick DeMann of Los Angeles
failed to timely disclose contributions to-
taling $10,000 (1 count). $400
. Tom & Holly Gores, FPPC No. 2003-
319. Tom & Holly Gores of Santa Rosa
failed to timely disclose contributions to-
taling $25,000 (1 count). $400
. Moffatt & Nichol Engineers, FPPC No.
2003-322. Moffatt & Nichol Engineers of
Long Beach failed to timely disclose con-
tributions totaling $15,000 (1 count). $400
. Thomas F. Kelly, FPPC No. 2003-331.
Thomas F. Kelly of Boston, Mass. failed
to timely disclose contributions totaling
$10,000 (1 count). $400
. William L. Davis, FPPC No. 2003-332.
William L. Davis of Encino failed to timely
disclose contributions totaling $26,000 (1
count). $400
. Clark E. Parker, FPPC No. 2003-339.
Clark E. Parker of Beverly Hills failed to
timely disclose contributions totaling
$13,000 (1 count). $400
. American Bioscience, Inc. & Its Affili-
ate American Pharmaceutical Part-
ners, Inc., FPPC No. 2003-372. Ameri-
can Bioscience, Inc. & Its Affiliate Ameri-
can Pharmaceutical Partners, Inc., of
Santa Monica failed to timely disclose
contributions totaling $11,000 (1 count)
$400
(Continued on page 11)
Page 11
FPPC Bullelin
December 2003 Volume 29, No.4
Page 12
FPPC Bulletin
December 2003 Volume 29, No.4
(Continued/rom page j I)
. Anne M. Roller, FPPC No. 2003-425.
Anne M. Roller of Coto de Caza failed to
timely disclose contributions totaling
$11,222.84 (1 count). $400
. Trimark Pacific Homes, FPPC No. 2003-
430. Trimark Pacific Homes of Westlake
Village failed to timely disclose contribu-
tions totaling $12,500 (1 count). $400
. Stephen A. Wynn, FPPC No. 2003-436.
Stephen A. Wynn of Las Vegas, Nev.,
failed to timely disclose contributions total-
ing $10,000 (1 count). $400
. Denis McMahon, FPPC No. 2003-454.
Denis McMahon of San Francisco failed to
timely disclose contributions totaling
$25,500 (1 count). $400
. Ravano & Cooney, FPPC No. 2003-456.
Ravano & Cooney of San Rafael failed to
timely disclose contributions totaling
$10,000 (1 count). $400
. 11 Haight Street, FPPC No. 2003-458. 11
Haight Street of Burlingame failed to timely
disclose contributions totaling $10,000 (1
count). $400
. Coyne Development Company, FPPC
No. 2003-461. Coyne Development Com-
pany of San Francisco failed to timely dis-
close contributions totaling $29,250 (1
count). $692.50
. Las Casitas Seventeenth Street, LLC,
FPPC No. 2003-463. Las Casitas Seven-
teenth Street, LLC of San Mateo failed to
timely disclose contributions totaling
$24,500 (1 count). $400
. Lofts at 712 Bryant Street, LLC & Affili-
ated Entity South Park Lofts, LLC, FPPC
No. 2003-464. Lofts at 712 Bryant Street,
LLC & Affiliated Entity South Park Lofts,
LLC of San Francisco failed to timely dis-
close contributions totaling $28,000 (1
count). $680
. Village Builders 98 & Affiliated Entities,
FPPC No. 2003-468. Village Builders 98 &
Affiliated Entities of San Francisco failed to
timely disclose contributions totaling
$25,000 (1 count). $400
. Tom Murphy & Affiliated Entities, FPPC
No. 2003-469. Tom Murphy & Affiliated
Entities of San Francisco failed to timely
disclose contributions totaling $39,250 (1
count). $792.50
. 1050 17th Street, LLC & Affiliated Enti-
ties, FPPC No. 2003-470.1050 17th
Street, LLC & Affiliated Entities of San
Francisco failed to timely disclose contribu-
tions totaling $33,250 (1 count). $732.50
. Allen, Curtis, Eisenberger & Affiliated
Entities, FPPC No. 2003-471. Allen, Cur-
tis, Eisenberger & Affiliated Entities of San
Francisco failed to timely disclose contribu-
tions totaling $32,250 (1 count). $722.50
. W. Charles Chastain, FPPC No. 2003-
489. W. Charles Chastain of Santa Monica
failed to timely disclose contributions total-
ing $11,396 (1 count). $800
. Enxco Service Corp, FPPC No. 2003-
491. Enxco Service Corp. of North Palm
Springs failed to timely disclose contribu-
tions totaling $15,000 (1 count). $400
. Parking Company of America Manage-
ment, LLC, FPPC No. 2003-494. Parking
Company of America Management, LLC,
of Downey failed to timely disclose contri-
butions totaling $26,000 (2 counts). $1,600
Failure to Timely File Major Donor Campaign
Statements. Staff: Chief Investigator Alan Hern-
don, Investigator III Jon Wroten, and Political Re-
form Consultant Mary Ann Kvasager. The follow-
ing persons and entities have entered into stipula-
tions for failing to file major donor campaign state-
ments that were due during the calendar year of
2002, in violation of Government Code Section
(ContInued on page 13)
Page 13
FPPC Bulletin
December 2003 Volume 29, No, 4
(Canlinued from page J 2)
84200, and failing to electronically file major-
donor statements for the calendar year 2002, in
violation of Government Code Section 84605:
. Helen Lho, FPPC No. 2003-408. Helen
Lho of Beverly Hills failed to timely dis-
close contributions totaling $50,000 (1
count). $900
. Network Management Group, FPPC
No. 2003-416. Network Management
Group of Monterey Park failed to timely
disclose contributions totaling $10,000
(1 count). $400
. Felim O'Reilly & Affiliated Entities,
FPPC No. 2003-455. Felim O'Reilly &
Affiliated Entities of San Francisco failed
to timely disclose contributions totaling
$52,250 (1 count). $922.50
. UMS Corporation, FPPC No. 2003-
457. UMB Corporation of San Francisco
failed to timely disclose contributions to-
taling $50,400 (1 count). $904
. AF Evans Company, Inc., FPPC No.
2003-460. AF Evans Company, Inc, of
Oakland failed to timely disclose contri-
butions totaling $51,750 (1 count).
$917.50
. Joe Imbelloni & Affiliated Entities,
FPPC No. 2003-462. Joe Imbelloni &
Affiliated Entities of San Francisco failed
to timely disclose contributions totaling
$54,750 (1 count). $947.50
. Matthew Murphy, FPPC No. 2003-465.
Matthew Murphy of San Francisco failed
to timely disclose contributions totaling
$50,500 (1 count). $905
. James G. Nunemacher, FPPC No.
2003-466. James G. Nunemacher of
San Francisco failed to timely disclose
contributions totaling $52,750 (1 count).
$927.50
Litigation
Report
Pending litigation report prepared for the
Commission's December 11,2003, meeting, with
updates:
California Pro Life Council, Inc. v. Karen Get-
man et al.
This case is a challenge to the Act's reporting
requirements regarding express ballot measure
advocacy. On October 24, 2000, the district
court dismissed certain counts for standing and/
or failure to state a claim. On January 22, 2002,
the court denied a motion for summary judgment
filed by plaintiff, and granted the FPPC's cross-
motion. The court entered judgment on January
22, 2002, and plaintiff filed a Notice of Appeal
with the Ninth Circuit Court of Appeal. The ap-
peal was briefed by the parties, and by Amici
The Brennan Center for Justice and the National
Voting Rights Institute Goining in one brief) and
the states of Washington, Nevada and Oregon
Goining in one brief.) The court heard oral argu-
ment on February 11, and rendered its decision
on May 8, 2003. The court rejected plaintiff's le-
gal claims, affirming that the challenged statutes
and regulations were not unconstitutionally
vague, and that California may regulate ballot
measure advocacy upon demonstrating a suffi-
cient state interest in so doing. The court re-
manded the matter back to the trial court to de-
termine whether California can establish a state
interest sufficient to support its committee disclo-
sure rules, and to determine whether the state's
disclosure rules are properly tailored to that inter-
est. To permit more time for discovery, the court
issued an amended scheduling order on October
21, providing that discovery will extend to May
17,2004, while discovery relating to expert wit-
nesses will conclude on August 20, 2004. Dis-
positive motions, if any, will be heard no later
than October 29, 2004. Trial is now set for
March 7, 2005.
(Conlinued on page 14)
Page 14
FPPC Bulletin
December 2003
Volume 29, No.4
.1.11, ...Litigation Report
(Continued from flag" 13)
FPPC v. Agua Caliente Band of Cahuilla
Indians, et al.
The FPPC alleges in this action that the Agua
Caliente Band of Cahuilla Indians contributed
more than $7.5 million to California candidates
and ballot measure campaigns between January
1 and December 31, 1998, but did not timely file
major donor reports disclosing those contribu~
tions. The suit also alleges that the Agua Call-
ente Band failed to timely disclose more than $1
million in late contributions made between July 1,
1998, and June 30, 2002. The FPPC later
amended the complaint to add a cause of action
alleging that the tribe failed to disclose a
$125,000 contribution to the Proposition 51 cam-
paign on the November 5, 2002, ballot. The
Agua Cahente Band has filed a Motion to Quash
Service for Lack of Personal Jurisdiction, alleg-
ing that it is not required to comply with the Politi-
cal Reform Act because of tribal sovereign im-
munity. A hearing on that motion was held on
January 8, 2003, before the Honorable Loren
McMaster, in Department 53 of the Sacramento
County Superior Court. On February 27, the
court ruled in the Commission's favor. On April
7, 2003, the Agua Caliente Band filed a petition
for writ of mandate in the Third Appellate District
of the Court of Appeal challenging the decision
of the trial court. The petition was summarily de-
nied on April 24, 2003. On May 5, the Agua Cali-
ente Band filed a Petition for Review in the Cali-
fornia Supreme Court. On June 23, 2003, the
court extended the deadline by which it must
grant or deny review to August 1, 2003. On July
2,2003, the court requested the FPPC to file an
Answer to the Agua Caliente Band's Petition for
Review by July 11, 2003. The FPPC filed its let-
ter brief Answer on July 11, 2003. The Agua
Caliente Band filed its reply on July 14, 2003.
On July 23, 2003, the Supreme Court granted
review and transferred the case to the Third Dis-
trict Court of Appeal, directing that court to va-
cate its original order and to issue an order di-
recting the Sacramento County Superior Court to
show cause why the relief sought in the Agua
Caliente Band's petition should not be granted.
The parties have completed briefing on the peti-
tion for writ of mandate, and two amicus briefs
have been filed in support of the Commission's
position by the Attorney General and Common
Cause. The Superior Court has scheduled a
status conference for January 29, 2004.
FPPC v. Santa Rosa Indian Community of the
Santa Rosa Rancheria
The FPPC alleges in this action that the
Santa Rosa Indian Community of the Santa
Rosa Rancheria (the Santa Rosa Rancheria)
failed to file major donor semi-annual campaign
statements in the years 1998, 1999, and 2001,
involving more than $500,000 in political contri-
butions to statewide candidates and statewide
propositions. The suit also alleges that the
Santa Rosa Rancheria failed to disclose more
than $350,000 in late contributions made in Oc-
tober 1998. The complaint was originally filed on
July 31,2002, and was amended to October 7,
2002. On January 17, 2003, the Santa Rosa
Rancheria filed a Motion to Quash Service of
Summons and First Amended Complaint. This
motion is based upon its claim of tribal sovereign
immunity from suit. The FPPC's response to the
motion was filed on February 10, 2003. The
matter was originally scheduled to be heard on
February 20, 2003, but was continued to March
6, 2003 at the request of Defendant. The matter
was heard on that date before the Honorable
Joe S. Gray in Department 54 of the Sacramento
County Superior Court, and on May 13, 2003,
the court entered its order in favor of Defendant.
On July 14, 2003, the FPPC filed its Notice of
Appeal in the Sacramento County Superior
Court, thus initiating an appeal of that court's de-
cision in the Third District Court of Appeal. On
November 7, 2003, the Commission filed its
opening brief in the appeal. The Santa Rosa
Rancheria's response brief is due to be filed
January 9, 2004.
(Continued on page! 5)
Page 15
FPPC Bulletin
December 2003
Volume 29, No.4
)f\171\ ...Litigation Report
~...L~
tCoflllnucd(rompagc 14)
Larry R. Danielson v. FPPC
This is a Petition for Writ of Mandate filed No-
vember 7,2002, in the Sacramento County Su-
perior Court, directed to the proposed decision of
an Administrative Law Judge which had not yet
come before the Commission. The FPPC filed a
preliminary opposition to the petition on Novem-
ber 12, 2002, asserting that Danielsen had failed
to exhaust his administrative remedies, since the
Commission has not yet adopted, modified or re-
jected the proposed decision of the Administra-
tive Law Judge, rendering the Petition prema-
ture. The Commission adopted the proposed
decision at its December 2002 meeting. On No-
vember 7,2003, after extensive briefing and a
hearing, Judge Lloyd Connelly denied the peti-
tion on the merits, after commenting that, proce-
durally, the petition was also doubtful. Signifi-
cantly, the court upheld the Commission's inter-
pretation of section 87302 as permitting agen-
cies to designate employees on their conflict of
interest codes using either the employees' civil
service classification or their job duties ("working
title"), The Attorney General's office is co-
counsel in this matter.
FPPC v. American Civil Rights Coalition,
et al.
In a lawsuit filed September 3, 2003, the
FPPC alleges that the American Civil Rights
Coalition ("ACRC") and its CEO Ward Connerly
violated state campaign disclosure laws by fail-
ing to file campaign statements reporting the
source of almost $2 million contributed to pro-
mote the passage of Proposition 54 on the Octo-
ber 7, 2003, ballot. A hearing on the FPPC's mo-
tion for a preliminary injunction was originally
scheduled to be heard on September 26, but
was rescheduled for September 19 at the re-
quest of FPPC attorneys, An Application for In-
tervention in this lawsuit was filed on September
16 by a group known as the "DOE Class" of past
and potential contributors to ACRC, seeking,
among other things, to postpone the September
19 hearing to an unspecified later date, The court
went forward with the injunction hearing on Sep-
tember 19, and denied the FPPC's motion on the
ground that the factual record was not sufficiently
developed to warrant a preemptive remedy. De-
fendants next brought a special motion to strike
plaintiffs' complaint. The FPPC filed its opposi-
tion to that motion on November 10,2003. On
November 20, the court denied the motion in its
tentative ruling. The court thereafter affirmed the
tentative ruling. On December 3, 2003, ACRC
filed a notice of appeal in the Superior Court that
it plans to appeal the ruling to the 3,d District
Court of Appeal.
FPPC v. Caroline Getty and Wild Rose, LLC
In a lawsuit filed October 16, 2003, the FPPC
alleges that Caroline Getty and her wholly owned
company Wild Rose, LLC violated campaign dis-
closure laws by making two $500,000 contribu-
tions to the Nature Conservancy Action Fund of
California in the name of Wild Rose, LLC, without
disclosing that Ms. Getty was the true source of
the contributions, The first contribution in 2000
was in support of the Propositions 12 & 13 cam-
paigns. The second contribution in 2002 was in
support of the Proposition 40 campaign. Both de-
fendants have been served with the complaint.
Responsive pleadings are due December 5,
2003.
.. ~~_...... ,~'^..~... .,', ~.,.'c",.,."
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FPPC
Toll-free l:\.dvice Line;
1-866-ASK-FPPC
(1 -866-275-3'772)
Page 16
FPPC Bulletin
December 2003 Volume 29. No.4
The Clerks' Corner
Statement of Economic Interests
Form 700 Helpful Hints,
Reminders, 2004 Quick Calendar
and Training Schedule for Filing Officers
Helpful Hints for
Form 700 Filing Officers
As we gear up for the annual filing of
Statements of Economic Interests. here are a
few reminders and helpful hints:
. Provide code filers with the disclosure cate-
gory portion of the conflict of interest code.
The disclosure category describes "what" eco-
nomic interests must be reported; the Form
700 describes "how" to report those economic
interests.
. Date stamp each statement upon receipt in
the "Official Use Only" section of the Cover
Page.
. Annual statements that are postmarked by the
March 1 or April 1. 2004. deadline (see page
19) are considered timely filed. For state-
ments that are postmarked on or after April 1.
2004. please include either the postmarked
envelope or a copy of the postmarked enve-
lope when you forward the statements to
FPPC as evidence of timely filing.
. Newly elected and leaving officeholders
must file assuming or leaving office state-
ments. respectively. within 30 days of as-
suming or leaving. Officeholders who are
re-elected are not required to file leaving and
assuming office statements. They continue
to file annual statements.
. Filers who assumed office between October
1. 2003. and December 31 , 2003. and filed
assuming office statements are not required
to file the 2003 annual statements. Their
next annual statement will be due on March
1 or April 1. 2005. (whichever is appropriate)
and will cover the day after their assuming
office date through December 31 , 2004.
. The gift. honoraria. travel and loan fact
sheets have not been updated. Continue to
use the fact sheets available on our web
site. Those fact sheets can be accessed by
clicking in the Library and Publications op-
tion on our home page.
. For statements that are to be forwarded to
the Fair Political Practices Commission. re-
member to send those in within five days of
the filing deadline.
.- ~<< - ~. ~ . - -
Clerks! The FPPC's toll-free advice line is also for you. Call1-866-ASK-FPPC
(1-866-275-3772) with your questions on filing and other issues. '
- - - -
Page 17
FPPC Bulletin
December 2003
Volume 29, No, 4
New Form 700 Will Be Available on FPPC Web Site
- Will Not Be Mailed Except by Request
Due to budget constraints, the
Form 700 (Statement of Eco-
nomic Interests) will not be auto-
matically mailed to city and
county clerks or state agencies
this year, The form will be avail-
able on our web site on or about
January 1, 2004, to be printed
and photocopied, We encourage
you to instruct your filers to com-
plete the interactive version of
the form, print out the schedules
they have completed and file the
statement directly with you, See
the .E-mail Notification to Filers'
inset at right. Hopefully, the form
will be available to you and your
filers in a more timely fashion
and."we have all saved a few
trees! If however you desire your
forms to be mailed directly to
you, please contact our Technical
Assistance Division by calling 1-
866-ASK-FPPC and press 3,
E.mail Notification to Filers
If you can communicate with your filers bye-mail then you can
notify them of their filing obligation bye-mail! Please be sure
that:
.
In your e-mail, direct filers to go to FPPC's web site,
www.fooc.ca.qov.click into "Forms" in the upper right-
hand corner of the home page, and scroll down to access
the Form 700 interactive version;
.
You have a mechanism in place to confirm that notification
has been received;
.
The e-mails are archived until such time as the statement
has been filed; and
.
You have scanned your conflict of interest code as an at-
tachment to your e-mail so that code filers know their re-
porting obligations.
Remember that for filers who do not have computer access or e-
mail capabilities, you must supply the form by mail or personal
delivery,
Form 700 Certification
- For Incumbents Running in the March 2004 Election
Incumbents who are running in the March
2004 election, and who filed candidate state-
ments in December 2003 in connection with
the election, may use a Form 700 Certification
in lieu of the full Form 700 as their annual
statement in 2004, This form may onlv be used
by incumbents, not challengers,
date statement contains all economic inter-
ests required to be disclosed by the annual
statement. If there are discrepancies be-
tween interests disclosed on the candidate
statement and the interests required by the
annual statement, the incumbent may attach
necessary schedules to the 700 Certification
to bring his or her annual statement up to
date,
The Form 700 Certification allows incum-
bents to review their candidate statement of
economic interests and verify that the candi-
(Continued on page /8)
,
Page 18
FPPC Bulletin
December 2003 Volume 29, No.4
...Form 700
Certification
(Conril1l.leJ from page J 7)
Example: Sierra County Supervisor Jones
filed a Candidate Form 700 at the time of filing
his declaration of candidacy in connection with
the March 2004 election. The period covered on
the Candidate Statement Form 700 included in-
come received for the previous 12-month period
and all investments and real property held on the
date the declaration of candidacy was filed. Su-
pervisor Jones won re-election in the March 2004
election. After reviewing the candidate state-
ment, it was determined that additional income
had been received between the period of time
that the declaration of candidacy had been filed
and the end of December 2003. Supervisor
Jones completes a new Schedule C, Income, and
includes it with the Form 700 Certification that is
filed in lieu of an annual Statement of Economic
Interests.
Filing Officer Training
Workshops Scheduled
For February
Filing officials should mark their calendars
and attend an FPPC workshop on processing
the Form 700 for agency staff.
Each year, the FPPC schedules a series of
training workshops that review the duties and re-
sponsibilities imposed on staff assigned to proc-
ess the Statement of Economic Interest, Form
700.
If you're a new filing official, these workshops
cover everything you need to know, including an
extensive discussion on how to review forms and
the process required to ensure that all filers do
file. If you've been a filing official in the past but
have been away from it for a few years, these
workshops are excellent refresher courses.
There's also ample time for questions and an-
swers.
Conducted by political reform consultants at the
FPPC's location in downtown Sacramento, these
two-hour workshops are free of charge. Seating
is limited, however, so reservations are abso-
lutely required - the earlier the better because
the workshops do fill up.
The FPPC is located at 428 J Street, corner of 5th
and J (a new "Subway" is on the ground floor), an
easy 20 minute ride from Sacramento Interna-
tional Airport. From Interstate 5, coming from ei-
ther direction, take the J Street exit; we're two
blocks up on the right.
State agencies:
Tuesday, February 3, 10 a,m.,
OR
Wednesday, February 11, 1 p.m.
City/County agencies:
Wednesday, February 4, 1 p.m.,
OR
Thursday, February 19,10 a.m.
Multi-county agencies:
Wednesday, February 18, 1 p.m.
For further information, and to make reservations,
please call (916) 322-5660, ext. 3, or
1 (866) 275-3772.
r""""" .""---'-"--,*"'''~~''''''''''<<.''.''_mM~-~l
I ~ See our handy I.
I:' ~ 2004 Statem~nt of .
:::::------------ Economic .
Interests quick ~
I calendar on page 20. Clip it I
i and save it! I
.!l'~of~~"M<l<>'.'4#'iK:-.J_~oq"""~'flt'."'a~'l>i':"'<"lIt~""'fI.li[~'lic~.mo
Page 19
FPPC Bulletin
December 2003
Volume 29, No.4
The SEI Filing Season
Arrives
As a new year begins, so too begins a new fil-
ing season for Form 700s, the annual statements
of economic interests (SEls).
Due March 1, 2004:
For statements from the following filers, make a
copy Df the statement for YDur records, send Dne
copy tD the Secretary Df State, and send the Drigi-
nal tD the Fair PDlitical Practices CDmmissiDn
within five days Df the deadline or five days Df re-
ceiving a statement that is filed late:
. GDvernor
. Lieutenant GDvernDr
. AttDrney General
. Insurance CDmmissiDner
. ContrDller
. Secretary Df State
. Treasurer
. Superintendent Df Public InstructiDn
. Members Df the state Assembly
. Members Df the state Senate
. Members Df the state BDard Df EqualizatiDn
FDr statements from the following filers, keep a
CDPY and send the original tD the FPPC within five
days of the deadline or receipt Df a statement filed
late:
. Judges and CDUrt commissioners
. Members of the Public Utilities CDmmission
. Members of the Energy ResDurces Conserva-
tion and Development CDmmission
. Members of the CalifDrnia Coastal CDmmissiDn
. Elected members of the board of administra-
tion of the California Public EmplDyees Retire-
ment System.
Due April 1,2004:
For statements from the following filers, keep a
CDPY and send the original tD the FPPC within five
days of the deadline or receipt of a statement filed
late:
. County Supervisor
. District AttDrney
. CDunty Counsel
. CDunty Treasurer
. CDunty Chief Administrative Officer
. CDunty Planning CDmmissioner
. Member Df City Council
. Mayor
. City Manager
. City AttDrney
. City Treasurer
. City Chief Administrative Officer
. City Planning Commissioner
Due April 1, 2004:
. City and cDunty public Dfficials whD manage
public investments (NOTE: Statements filed
by these Dfficials are not fDrwarded to the
FPPC).
Designated Employees Within a City, County
or Local Agency Conflict of Interest Code
To determine who else within YDur city, county
or local agency must file statements of eCDnDmic
interests, refer tD your agency's conflict-Df-
interest cDde. That cDde should list positions
within your agency for which emplDyees must
cDmplete SEls. The conflict-of-interest code
shDuld alsD set Dut emplDyees' filing obligatiDns
and the date that annual SEls are due. If your
agency adDpted the mDdel cDde in 2 C.C.R. S
18730 as your conflict-of-interest code, YDur filing
deadline is April 1.
When you give a designated employee a
Form 700 to complete, YDU must also prDvide the
emplDyee's disclDsure categDry (frDm your
agency's cDnflict Df interest code). The agency
cDnflict cDde, nDt the form, determines what that
emplDyee must report and where to file. The ma-
jDrity of designated emplDyee statements are not
sent to the FPPC. You should also provide the
FPPC's fact sheet Dn gift, honoraria and travel
restrictions which is available on the Commis-
sion's website at http://www.fppc.ca.gov.
See our 2004 quick calendar on the next
page. .
Page 20
FPPC Bulletin
December 2003
Volume 29, No.4
~. .>"?/ 2004 Quick Calendar for Statements of Economic
~ Interests and Conflict of Interest Codes
,ll
~
~
January 2004
Form 700 Mailing
Due to budget constraints, the FPPC is only providing eh-mdail notification tfo agencies whden l
the 2003/2004 Form 700 becomes available, unless a ar copy is specl Ically requeste. l
The form is scheduled to be approved at the Commission's December 2003 meeting, so
the form should be available on our web site in early January 2004. Continue to use the
2003 Gift, Honoraria, Travel and Loan Fact Sheet available on our web site Since there
were no changes affecting this fact sheet, it will not be updated this year.
~
<~
l
~
April 6, 2004
Form 700 Filing Deadline
See the previous page (page 19) for the list of officials required to file on March 1.
Deadline for Forwarding March 1 Form 700s to FPPC
You can clear your desk and forward these statements to us before the deadline.
Form 700 Filing Deadline
See page 19 for the list of officials required to file on April 1.
Deadline for Forwarding Form 700s Filed by April 1 to FPPC
Only forward statements for the officials listed on page 19.
June 2004 Biennial Conflict of Interest Code Mailing
Each city, county and multi-county agency will receive a mailing explaining the biennial
code review process.
March 8, 2004
March 1, 2004
April 1 , 2004
.~
1
July 1, 2004 Local Code Reviewing Body Notification Deadline
City and county code reviewing bodies are required to notify each local agency within their
jurisdiction to review its conflict of interest code and determine if amendments are neces-
sary.
- The City Council is the code reviewing body for city agencies.
- The Board of Supervisors is the code reviewing body for county agencies and for other
local agencies (special districts) with single county jurisdiction.
August 2004 Forward November 2 Election Form 700 Candidate Statements to FPPC
Only forward candidate statements for filers listed on page 19.
Summer 2004 Conflict of Interest Code Workshops
Watch our website for upcoming workshops in Sacramento to assist local government
agencies with the code amendment process.
October 1, 2004 Local Agency Biennial Notice Deadline
Agencies that notify the code reviewing body that a conflict of interest code amendment is
necessary must amend their codes within 90 days. Only multi-county agencies must for-
ward their notices to the FPPC. City and county agencies forward their notices to their
code reviewi ng body.
Ongoing Assuming and Leaving Office Statements
- Continue to monitor and notify filers who assume or leave office of the Form 700 filing
requirements.
- Forward assuming and leaving office statements for filers listed on page 19 within five
days of a filing deadline.
- Notify the FPPC if you are not successful in obtaining a statement for these filers.
;i<...... . ',..;,;a.,
.
-
Page 21
FPPC Bulletin
December 2003
Volume 29, No.4
Legislative
Update
Chaptered bill:
Newly chaptered legislation will extend to lo-
cal public officials the Political Reform Act's pro-
hibition against participating in or attempting to
influence government decisions that affect a pro-
spective employer.
The legislation, AB 1678, by Assemblymem-
ber Gloria Negrete McLeod, was signed by the
governor on October 10, 2003, and will go into
effect on January 1, 2004.
The Commission supported the legislation,
which extends to local officials a prohibition
against taking part in governmental decisions af-
fecting an entity with whom they are negotiating
future employment. The FPPC asked the legis-
lature for an annual appropriation of $145,000 to
fund additional staffing necessary to implement
and enforce the new law. The legislature passed
the bill but did not appropriate the additional
funding.
The current prohibition has been in effect
since 1991, but applied only to state administra-
tive officials, elected state officers and desig-
nated employees of the Legislature. The new
law extends the prohibition to all public officials,
which includes every member, officer, employee
or consultant of a state or local government
agency. The prohibition will not apply to mem-
bers of the Board of Governors and designated
employees of the State Bar of California, and
public officials serving in some judicial and legal
positions.
(The following is condensed from the Legislative
Report prepared for the December 11, 2003,
meeting of the Commission.)
Proposed constitutional amendment:
SCA 14 (Vasconcellos) would, subject to voter
approval, establish the FPPC, California Eco-
nomic Strategy Panel (CESP) and the California
Redistricting Commission by constitutional
amendment. It would establish the Clean Cam-
paign Fund, administered by the FPPC and pro-
viding public funds to candidates under certain
conditions. It would require the FPPC to license
and monitor campaign consultants, change vot-
ing options and primary election date, increase
the size of the Senate and Assembly and
lengthen their members' terms of office. It would
gives the Legislative Counsel a role in redistrict-
ing, revise redistricting standards and create the
CRC for the purpose of advising the Legislative
Counsel, and give the Supreme Court the job of
writing a redistricting plan if the Legislature does
not approve one of three plans submitted by the
Legislative Counsel.
Bills proposing to amend the Political Reform
Act:
AB 890 (Wesson) would allow an elected state
officer serving his or her last permitted term of
office to accept contributions after the date of the
election. Would apply Proposition 34 limits only
to committees formed for post-Proposition 34
elections.
AB 1197 (Wiggins) would include in the defini-
tion of "designated employee" any board mem-
ber, chief business officer, superintendent, assis-
tant superintendent, deputy superintendent, as-
sociate superintendent, chief personnel officer,
and general counsel of a public school district or
county office of education, and equivalent posi-
tions, and any individual having governance or
management responsibility in a charter school.
(Continued on page 22)
Page 22
FPPC Bulletin
December 2003
Volume 29, No.4
...Legislative
Update
ICOlllim..edjrom page 2/)
AB 1501 (Levine) would allow a state candidate
to change his or her statement accepting or re-
jecting the voluntary expenditure limits at any
time prior to the deadline for filing nomination pa-
pers, provided that he or she has not exceeded
the voluntary limits.
AB 1623 (Longville) would repeal the prohibi-
tion on using public funds to obtain elected of-
fice. It would provide for the creation of
"Freedom Drafts," defined as a claim on an
amount in the state treasury, for an individual to
make one or more contributions to an eligible re-
cipient, on a form prescribed by the Secretary of
State, in the amount of not less than $10 each
and which in the aggregate do not exceed $10'0
in a calendar year.
AB 1784 (Wolk) would prohibit legislators from
participating in decisions in connection with
which a lobbyist, with whom the legislator has a
business relationship, has attempted to influence
the legislator. Defines business relationship, and
requires legislators who recuse themselves un-
der this section to disclose the nature of the busi-
ness relationship on the record.
AB 1785 (Frommer) would prohibit a lobbyist
from contacting a legislator with whom the lobby-
Ist has or had a contract to provide political con-
sulting services during the two year period for
the purpose of influencing legislative action.
5B 467 (Johnson) would allow an elected state
officer serving his or her last term to accept con-
tributions to pay for expenses associated with
holding that office. The contributions are subject
to Proposition 34 limits.
5B 604 (Perala) would define "cumulative con-
tributions" to be those contributions received be-
ginning 12 months prior to the date the commit-
tee made its first expenditure to qualify, support,
or oppose the measure and ending within seven
days of the time the advertisement is sent to the
printer or broadcast station. It would also mod-
ernize the language of the Act relating to the fil-
ing of a statement of organization by deleting a
reference to filing by telegram, and add methods
for filing, including facsimile transmission and
guaranteed overnight delivery. Amended to re-
form the slate mail disclosure statutes at issue in
Levine v. FPPC.
5B 641 (Brulte) would change the definition of
"mass mailing" found in the Act from "mail" to a
specific definition of what items delivered to a
person constitute a mass mailing. It would also
add language to the Act prohibiting the expendi-
ture by a candidate, committee or slate mail or-
ganization for anonymous telephone advocacy
for a candidate, ballot measure, or referendum.
5B 1072 (Burton) would add contributions
made to or received by a political party commit-
tee after the closing date of the last campaign
statement required to be filed before an election
to the definition of late contribution.
Page 23
FPPC Bulletin
December 2003 Volume 29, No.4
FPPC Advice Summaries
Formal written advice provided pursuant to
Government Code section 83114 subdivision (b)
does not constitute an opinion of the Commis-
sion issued pursuant to Government Code sec-
tion 83114 subdivision (a) nor a declaration of
policy by the Commission. Formal written advice
is the application of the law to a particular set of
facts provided by the requestor. While th~s ad-
vice may provide guidance to others, the Immu-
nity provided by Government Code section
83114 subdivision (b) is limited to the
requestor and to the specific facts contained in
the formal written advice. (Cal. Code Regs., tit.
2,918329, subd. (b)(7).)
Informal assistance may be provided to per-
sons whose duties under the act are in ques-
tion. (Cal. Code Regs., tit. 2, 918329, subd.
(c).) In general, informal assistance, rather than
formal written advice is provided when the
requestor has questions concerning hi7 ?r her
duties, but no specific government decIsion IS
pending. (See Cal. Code Regs., tit. 2, 918329,
subd. (b)(8)(D).)
Formal advice is identified by the file number
beginning with an "A," while informal assistance
is identified by the letter "I."
Campaign
David Bauer
Maddox for Assembly
Dated: August 22, 2003
File Number A-03-037
An Assembly member had funds in his campaign
bank account on January 1, 2001, redesignated
his committee for his next successful Assembly
campaign and later transferred funds from the
Assembly committee to a state Senate campaign
committee. Because the balance of funds in the
bank account for the Assembly committee never
fell below $45,000 between January 1. 2001,
and the date of the transfer of funds to the state
Senate committee. it could be established that
these funds remained from the funds in the com-
mittee bank account on January 1. 2001. Thus,
he was permitted to amend the Form 460 filed
for his state Senate campaign to refiect that
$45,000 of the $110.000 transferred from his As-
sembly committee was unattributed pursuant to
regulation 18530.2.
Mike Morrell
Mike Morrell for Senate
Dated: August 6, 2003
File Number A-03-089
A former candidate for a U.S. congressional seat
was advised that he could transfer funds remain-
ing in his federal candidate committee to his con-
trolled-committee for a current state Senate race.
The transfer, however, is subject to attribution
under section 85306 and contribution limits un-
der section 85301(a). What this means is that
funds must be attributed to the individual donors
to the federal congressional committee and each
such contribution may only be provided to the
candidate's state Senate committee if, when the
federal and state contributions are combined.
they would not cause a donor to the state Sen-
ate committee to exceed the applicable contribu-
tion limit. In this instance, the applicable contri-
bution limit is $3,200 per person. per election.
Gregory D. Totten, D.A.
Ventura County
Dated: August 1, 2003
File Number A-03-130
Officials must disclose as contributions any pay-
ments raised for officials' litigation costs in con-
nection with activities related to their status as
officeholders. The two officials should notify
contributors of the specific amount allocated to
each of their committees.
Wayne Ordos
Kern County
Dated: August 7, 2003
File Number A-03-144
The use of surplus funds belonging to a de-
ceased candidate and the rule applicable to dis-
bursement of the funds to charities is discussed
in this letter.
Page 24
FPPC Bulletin
December 2003
Volume 29, No.4
/Conllnuedjrom page 23j
Jane K. Willet
Tom Wilson For Assembly
Dated: August 27, 2003
File Number A-03-165
Only subvendors who receive individual pay-
ments of $500 or more made on behalf of a com-
mittee are required to be itemized on the com-
mittee's campaign statement. In addition. this let-
ter concludes that the use of a campaign com-
mittee credit card is reported the same as if the
committee's checking account were used; all
vendors who receive a single payment of $100
or more must be itemized on the committee's
campaign statement. If more than one payment
is made for the same good or service, the pay-
ments must be cumulated to determine if the ap-
plicable threshold has been reached.
Gay Brewer
City of Inglewood
Dated: August 25, 2003
File Number 1-03-174
A candidate was given general advice about re-
porting nonmonetary contributions when an indi-
vidual or entity pays a vendor directly for goods
or services provided to a candidate. The letter
also discusses amendments to campaign state-
ments.
Caren Daniels-Meade
Political Reform Division
Dated: August 11,2003
File Number A-03-178
The Secretary of State is advised that an
amended Candidate Intention Statement (Form
501) filed by a replacement candidate for Gover-
nor in the October 7, 2003, recall election, which
changes the candidate's designation regarding
the voluntary expenditure limits, has no force
and effect. The Act does not provide any
method for a state candidate to change his or
her expenditure limit designation. The letter rec-
ommends that the amended Form 501 be re-
turned to the candidate.
Marilynne Mellander
EI Sobrante Municipal Advisory Council
Dated: August 20, 2003
File Number A-03-181
A board member who has been appointed to an
elected position is advised that, because the
board member position is unsalaried, she need
not file a semi-annual campaign statement for
any 6-month period in which she has neither re-
ceived contributions nor made expenditures.
Virginia J. Bloom
Office of the County Clerk/Recorder
Dated: July 17, 2003
File Number 1-03-135
A county filing officer is advised that the county
is authorized and required to review all original
campaign statements filed with the county, in-
cluding those filed by a state candidate who is
also a county officeholder. There is no time limit
on requesting amendments.
Margie L. Rice
City of Westminster
Dated: July 16, 2003
File Number A-03-140
Cumulative totals reported on a campaign state-
ment, Form 460, are calculated on a calendar
year basis. Thus, cumulative totals from the pre-
vious report must be added to figures from the
reporting period for the report being filed to de-
termine the cumulative totals, unless the report
being filed covers the period beginning January
1. In that case, cumulative totals from the previ-
ous report should not be added to the current re-
porting period figures, except for loans received,
loans made and accrued expenses.
James V. Lacy
City of Dana Point
Dated: June 6, 2003
File Number 1-03-076
A local officeholder, defined as a "candidate" un-
der S 82007, does not "control" a statewide can-
didate committee merely by reason of his status
as a local officeholder, while he serves as treas-
urer and legal counsel to the statewide commit-
tee.
Kristine Sremaniak
Mike Morrell for Assembly
Dated: June 13, 2003
File Number A-03-092
Several questions concerning in-kind contribu-
tions to a candidate's campaign from the candi-
(Continued on page 25)
Page 25
FPPC Bulletin
December 2003
Volume 29, No.4
(Cuntinued/rum page 24)
date's wholly owned corporation under Proposi-
tion 34 limits are discussed.
Ginger Osborne
Village Laguna of Laguna Beach
Dated: June 11, 2003
File Number A-03-108
A multi-purpose organization, which is also a gen-
eral purpose recipient committee, is advised that
it has only to report that portion of its receipts
which is actually spent in connection with political
activities in California. A general purpose recipi-
ent committee is not required to have a separate
bank account; it may use the bank account of its
sponsoring organization. A sponsored committee
must include the full name of its sponsor in the
name of the committee.
Conflict of Interest
Terence R. Boga
City of Seal Beach
Dated: August 8, 2003
File Number A-03-067
A city engineer and a city manager are each pre-
sumed to have a conflict of interest in decisions
pertaining to a proposed development located
within 500 feet of each official's real property. The
officials are prohibited from participating in these
decisions unless this presumption is rebutted or if
an exception to the conflict-of-interest rules ap-
plies. The "significant segment" prong of the
"public generally" analysis is specifically ad-
dressed. (Further discussion of the "public gener-
ally" exception as it applies to the facts surround-
ing these decisions is included in a follow-up let-
ter, 80g8 Advice Letter, No. 1-03-067(a).)
John M. Rea
Department of Industrial Relations
Dated: August 7, 2003
File Number A-03-107
A state agency is advised that third party contrac-
tors hired to initiate and enforce labor compliance
agreements according to statutory requirements
are consultants under the Act since they make
governmental decisions.
Bruce C. Cline
City of Folsom
Dated: August 22, 2003
File Number A-03-110
A historic district commissioner has a conflict of
interest in a railroad block decision unless the
"public generally" exception applies.
Sandra Wallace
Soquel School District
Dated: August 4, 2003
File Number 1-03-111
A public official is not required to obtain a profes-
sional appraisal, it is up to the official to decide
whether or not to seek such an appraisal. The
Commission cannot evaluate the factual accuracy
of an appraisal, the official must make this deter-
mination.
Louis F. Brichetto
Oakdale Irrigation District
Dated: August 8, 2003
File Number A-03-153
A director of an irrigation district, who pledges
that his properties will not be annexed to the dis-
trict, is presumed not to have a conflict of interest
in a decision to lower the annexation fee.
Roy A. Hanley
Municipal Advocates Group, LLP
Dated: August 4, 2003
File Number 1-03-154
Because the council member owns a lot which is
zoned in the zoning category subject to a city
council decision, the affected council member
may not participate in the decision to change that
zoning code.
Mark W. Steres
City of Monterey Park
Dated: August 1, 2003
File Number A-03-155
Where a public official has a source of income
which abuts a development project before the
governmental body, and which requires ease-
ments across its property in order to complete the
development, a conflict of interest might exist be-
cause both decisions may be too interrelated.
(Continued on paKe 26)
Page 26
FPPC Bulletin
December 2003
Volume 29, No.4
(Contlnuedjrum page 25)
David E. Wulfsberg
Sherwood Automotive Group
Dated: August 29, 2003
File Number A-03-156
Under certain circumstances, the Commission
will pierce through a nonprofit and treat a dona-
tion to the nonprofit as a payment to the public
official who is employed by or serves on the
nonprofit board. Provided the public official
does not solely control the organization and the
donation will not affect the income the public of-
ficial receives from the charity, the donation will
not be considered a gift to the official.
T. Brent Hawkins
City of Brentwood
Dated: August 20, 2003
File Number A-03-160
Advice was sought on behalf of three public offi-
cials as to whether they have conflicts of inter-
est disqualifying them from voting on the loca-
tion and development of a new parking struc-
ture in the city's downtown redevelopment area.
The advice concluded that insofar as the re-
quest sought advice on "decisions relating to
the construction of the parking garage," the re-
quest was too vague to offer a response. The
advice, therefore, was limited to a decision con-
cerning location.
One official was advised that her salary from a
local school district fell under the local govern-
ment agency exception found in the Act's defini-
tion of "income" so that she does not have an
economic interest that will be affected by these
decisions. Another official was advised that al-
though he is a named beneficiary under a trust,
which owns property within 500 feet of the pro-
posed site, since the trust was revocable and
he has not received any distributions from the
trust, the assets and income of the trust are not
attributable to him. For these reasons, the ad-
vice concluded that he does not have an eco-
nomic interest to be affected by these deci-
sions. The third official was advised that since
he was a 50% owner of a commercial property
located within 500 feet of one of the two alter-
nate sites contemplated for the parking garage,
he has a conflict of interest disqualifying him
from voting on the site selection.
Daniel J. McHugh
City of Redlands
Dated: August 12, 2003
File Number A-03-163
Redevelopment agency directors have a conflict
of interest in a decision to issue new tax incre-
ment bonds for the agency, only if the decision
will have a material and foreseeable financial ef-
fect on their economic interests, including
sources of income and businesses that operate
in the redevelopment area.
Doug Tessitor
City of Glendora
Dated: August 20, 2003
File Number A-03-167
A council member is advised that neither the
business owned solely by his brothers-in-law nor
contributions given to him by his brothers-in-law
are economic interests of the council member's.
In the absence of economic interests, the council
member is able to participate in decisions re-
garding the business owned by his brothers-in-
law.
Pete Parkinson, AICP
County of Sonoma
Dated: August 7,2003
File Number A-03-170
A public official is advised that he does not have
a conflict of interest prohibiting his involvement in
decisions concerning a groundwater resource
study, even though his principal residence is lo-
cated within the study area. According to the
facts provided by the official, governmental deci-
sions resulting from the study will not have any
financial effects at all upon his principal resi-
dence.
William H. Wainwright
Martinez City Council
Dated: August 27, 2003
File Number A-03-179
A council member whose residence is located
within 500 feet of real property which is the sub-
ject of a governmental decision may vote on that
decision if he reasonably relies on an appraisal
(Continued on page 27)
Page 27
FPPC Bulletin
December 2003
Volume 29, No.4
(Continued from page 26)
which indicates that the decision will have no
financial effect on the council member's real
property.
Guy D. Petzold
City of Stockton
Dated: August 20, 2003
File Number A-03-184
A campaign contribution is not considered ei-
ther a gift or income for purposes of a conflict of
interest under section 87100 of the Act. More-
over, the disqualification provisions of section
84308 of the Act do not apply to local govern-
ment agency officials, such as city council
members, who are directly elected by the vot-
ers.
Derek Johnson
Isla Vista Recreation & Park District
Dated: July 3, 2003
File Number A-03-062
A director for a recreation and park district is
employed by a union as a part-tirne organizer
and is also employed by a nonprofit organiza-
tion. When his employer, the union, negotiates
with the district on a labor contract, the union
meets the test for direct involvement in the gov-
ernmental decision. The director will be re-
quired to recuse himself from the decision, be-
cause any reasonably foreseeable financial ef-
fect at all, even one penny, on the union is
deemed material. The nonprofit organization
may be an independent basis for disqualifica-
tion from this decision if the decision will have a
reasonably foreseeable material financial effect
on the nonprofit. When the district considers an
ordinance sponsored by the director, both of his
employers, as indirectly involved entities, may
disqualify the director from participating in the
decision if the decision will have a reasonably
foreseeable material financial effect on either
entity. In addition, a "nexus" exists between the
director's duties for the union and his public du-
ties so that any reasonably foreseeable finan-
cial effect on the union would disqualify the di-
rector from participation in this governmental
decision as well.
Michael F, Dean
City of Dixon
Dated: July 21,2003
File Number 1-03-082
A council member may not participate in a deci-
sion regarding development in a thoroughbred
horseracing facility if it is reasonably foreseeable
that her economic interests will be materially af-
fected unless the "public generally" exception ap-
plies.
Sue Horne
County of Nevada
Dated: July 24, 2003
File Number A-03-095
A member of the board of supervisors may par-
ticipate in a decision to alter requirements of the
sacond unit pilot program since it is not reasona-
bly foreseeable that the decision will have a ma-
terial financial effect on the official's economic
interests.
Danny Weil, PhD, JD
The Critical Thinking Institute
Dated: July 17, 2003
File Number 1-03-098
The mayor pro tem of a city who has a financial
interest in his coffee shop is advised that he can-
not participate in decisions if it is reasonably
foreseeable that his coffee shop will be materi-
ally financially affected as a result of those deci-
sions. If the mayor pro tem sells the coffee shop
he will have an economic interest in the pur-
chaser for 12 months after the purchase. How-
ever, if he gifts the interest in the coffee shop to
his adult child, he would have an economic inter-
est in the coffee shop as a source of income for
12 months.
T. Brent Hawkins
City of Hawthorne
Dated: July 1, 2003
File Number A-03-112
Multiple public officials were advised as to
whether their economic interest in real property
presents a conflict of interest which prohibits
their involvement in decisions concerning the ad-
dition of property to an existing redevelopment
area. The appropriate distance for measuring
(Cuntinued on page 28j
Page 28
FPPC Bulletin
December 2003
Volume 29, No.4
(Conrinucdji-nm pagf 27)
whether the officials' real property interests are
within 500 feet of the project area and therefore
directly involved in these decisions is the dis-
tance between either the current or proposed
boundaries of the redevelopment area and their
respective properties. The general form of the
"public generally" exception (regulation
18707.1) cannot be applied since there is no
showing that their economic interests will be af-
fected in a manner that is similar to the effect on
the public generally. The specialized form of
the "public generally" exception (regulation
18707.9) does apply to one official's economic
interest in residential rental property.
Brien J. Farrell
City of Santa Rosa
Dated: July 11, 2003
File Number 1-03-121
A member of the city's design review board was
given informal assistance on whether she may,
in her private capacity as a land use consultant,
represent clients before other city agencies and
communicate with city staff. The official was
advised that she may represent clients before
other city agencies as long as she does not pur-
port to be acting in her official capacity. The of-
ficial was further advised that an agency in-
cludes its staff or city staff assigned to or
shared by that agency. Since the design review
board shares staff with another city agency, the
official was advised that she may not communi-
cate with any shared staff that is assigned to a
project that is or will be before the design re-
view board. Any such communication would be
an appearance or contact with the official's own
agency for the purpose of influencing a govern-
mental decision.
Ron Brandley
City of Sierra Madre
Dated: July 15,2003
File Number 1-03-127
A public official who is a business owner of a
floral shop and also sits on the city planning
commission may not vote on a matter that af-
fects the signs of that floral shop.
Lisa A. Foster
City of San Diego
Dated: July 31, 2003
File Number 1-03-128
When a public official attends an event that has
no admission price, which is held for a purpose
other than entertaining or meeting with officials,
the valuation of the event is based on the offi-
cial's pro rata share of the total cost of the event.
The official should make a good faith determina-
tion of the value of the gift received when dis-
closing gifts, regardless of when the information
is obtained.
Jonathan B. Stone
City of Vista
Dated: July 24, 2003
File Number A-03-131
A city employee was advised that since neither
her income from her former employer, nor the
stock she had divested, were economic inter-
ests, she could participate in a profit sharing ne-
gotiation between the city and her former em-
ployer.
Karin D. Troedsson
Town of Yountville
Dated: July 16, 2003
File Number A-03-134
A public official who resides in a semi-private
room at the Veterans Home of California in
Y ountville does not have "an interest in real
property" in the home or its grounds.
Sheryl L. Bratton
Sonoma County
Dated: July 17, 2003
File Number A-03-138
Where development projects are not contingent
upon one another, they may nevertheless be too
interrelated to be considered separately. In such
cases, a public official's conflict of interest in one
situation will disqualify him or her from participat-
ing in other decisions.
Julia M. Lew
City of Porterville
Dated: July 17, 2003
File Number A-03-139
Participation in a governmental decision is not
(Continued on page 29)
Page 29
FPPC Bulletin
(Continued from page 28)
legally required where there exists an alterna-
tive source of decision consistent with the pur-
poses and terms of the statute authorizing the
decision.
Prentice Deadrick
Center for Community & Family Services,
Inc.
Dated: July 21, 2003
File Number 1-03-143
A public official who is employed by a nonprofit
organization was given informal assistance
wherein he was told that he could vote on mat-
ters that would have a material financial effect
upon a business owned by one of his em-
ployer's board members. Since management of
the nonprofit organization, including hiring and
decisions regarding compensation, are made by
a majority vote of the board, it was inappropri-
ate to "pierce" through the organizational struc-
ture; the individual board member and his
wholly-owned business are not economic inter-
ests to the public official.
Gregory V. Moser
Del Mar Thoroughbred Club
Dated: July 23, 2003
File Number A-03-147
The existence of a conflict of interest is prem-
ised. in part, on the making and participating in
making or influencing of a governmental deci-
sion. Thus, a board member of an agency will
not have a conflict of interest prohibiting him
from influencing a decision before a private en-
tity. the Del Mar Thoroughbred Club, on behalf
of his employer. However. the director will have
a conflict of interest in any governmental deci-
sion that will have a reasonably foreseeable
material financial effect on his employer.
Edwin S. Beckenbach
No. San Juan Fire Protection District
Dated: July 21, 2003
File Number A-03-152
There is no conflict of interest under the Act
when a wife works for a local governmental
agency at the same time her spouse serves on
the board of the agency.
December 2003
Volume 29, No.4
Robert Westmeyer
County of Napa
Dated: June 3, 2003
File Number 1-03-003
The concerns of a public official regarding par-
ticipation generally as a county supervisor and
her possible conflicts of interest were addressed
in a prior advice letter, Dillon Advice Letter No. 1-
02-082. This follow-up letter applies the "public
generally" exception to a referendum decision
possibly revoking the adoption of a stream set-
back ordinance. Despite being asked to assume
a conflict of interest exists to apply the "public
generally" exception. not enough information
was provided to determine if the criteria of the
significant segment component of the "public
generally" exception were met. or whether or not
they would be affected in substantially the same
manner.
Mario Biagi, Supervisor
Amador County Board of Supervisors
Dated: June 10, 2003
File Number 1-03-010
A county supervisor who was also a wine grape
grower did not have a disqualifying conflict of in-
terest with respect to his business in relation to a
decision regarding a proposed change to the
county's winery ordinance that would allow on-
site fresh food service in winery tasting room ar-
eas. This was because the income to or ex-
penses of his business were affected more by
external factors such as the cost of labor and
over-production of grapes than the proposed
change to the winery ordinance. However. the
official was advised that he may have a disquali-
fying conflict of interest if the proposed change
would have a reasonably foreseeable material
financial effect on the winery with which he con-
tracted to sell his grapes.
Jennifer K. McCain
City of Escondida
Dated: June 4, 2003
File Number 1-03-021
A council member is presumed to have a conflict
of interest in a decision to change the bounda-
ries of a downtown business district. where the
council member leases property in the district.
(Continued on page 3U)
Page 30
FPPC Bulletin
IContinued ji-om page 29)
Brian M. Libow
City of San Pablo
Dated: June 4,2003
File Number A-03-052
The "public generally" exception is applied to the
conflict-of-interest rules in the context of a city
council decision regarding a school and recrea-
tional facility project. The officials own property
within 500 feet of the project sites.
Terence R. Boga
City of Seal Beach
Dated: June 4, 2003
File Number A-03-067
A city engineer and a city manager are each pre-
sumed to have a conflict of interest in decisions
pertaining to a proposed development located
within 500 feet of each official's real property.
The officials are prohibited from participating in
these decisions unless this presumption is rebut-
ted or if an exception to the conflict of interest
rules applies. The "significant segment" prong of
the "public generally" analysis is specifically ad-
dressed. (Further discussion of the "public gener-
ally" analysis as it applies to the facts surrounding
these decisions is included in a follow-up letter,
80ga Advice Letter No. A-03-067a.)
Bart J. Thiltgen
City of Bakersfield
Dated: June 11, 2003
File Number 1-03-070
A general discussion of the potential conflict-of-
interest issues facing a member of a city council
who is contemplating outside business relation-
ships that would result in some city employees
becoming sources of income to the official.
Richard E. Nosky
City of Salinas
Dated: June 18, 2003
File Number 1-03-073
A city council member who is employed by a un-
ion to organize unrepresented workers was ad-
vised that he had a conflict of interest disqualify-
ing him from participating in city council decisions
concerning renewal or renegotiation of collective
bargaining agreements between his union em-
ployer and employees of the city. He may also be
December 2003
Volume 29, No.4
disqualified from participating in city council deci-
sions to eliminate vacant city positions or con-
cerning employee discipline/grievances, depend-
ing upon whether the decisions will have a rea-
sonably foreseeable material financial effect upon
his union employer. The advice concludes with a
general description of the segmentation process,
as it pertains to city council decisions.
Jonady Horn Sun
Public Utilities Commission
Dated: June 9, 2003
File Number A-03-079
The application of the "former employer" excep-
tion was found not to apply in this instance since
the person in question was an independent con-
tractor and not an employee. Also, it was deter-
mined that every "otherwise related business en-
tity" would constitute an economic interest if even
one met the $500 source of income threshold,
even though the amount received from each
separate entity is not combined to attain this
threshold amount for purposes of disqualification.
Mark R. Alexander
City of La Caiiada-Flintridge
Dated: June 25, 2003
File Number A-03-081
Two members of a parks and recreation commis-
sion are prohibited from making, participating in
making or influencing any governmental decisions
that will reasonably and foreseeably have a mate-
rial financial effect on any of their economic inter-
ests, including any decision that will have a mate-
rial financial effect on their personal finances. Be-
cause the parks and recreation commission is a
decision-making body, the commissioners' posi-
tions need to be "designated" within the city's
conflict of interest code. The "legally required par-
ticipation" exception may apply in cases where
there is no alternative source of decision-making
authority and the parks and recreation commis-
sion would be paralyzed without the participation
of a disqualified commissioner. However, the ex-
ception does not apply when the disqualified offi-
cial's vote is merely needed to break a tie or
when a quorum can be convened of other mem-
bers who are not disqualified.
(Continued on page 3 J)
Page 31
FPPC Bulletin
December 2003
Volume 29, No.4
(ConllfllNd ji--om pug" 30)
Roy A. Hanley
City of Atascadero
Dated: June 4, 2003
File Number A-03-103
Where a council member owns property that is
subject of a zoning decision, the effect of the de-
cision is presumed not to be material, so long as:
1) the decision solely concerns the amendment of
an existing zoning ordinance or other land use
regulation (such as changes in the uses permit-
ted, or development standards applicable, within
a particular zoning category) which is applicable
to all other properties designated in that category,
and 2) there are no specific circumstances re-
garding the governmental decision, its financial
effect, and the nature of the real property in which
the public official has an economic interest, which
make it reasonably foreseeable that the decision
will have a material financial effect on the real
property in which the public official has an inter-
est.
Darren Bogie
County of San Benito
Dated: June 4, 2003
File Number A-03-105
The public official was advised that his adult child
was not a member of the official's "immediate
family" within the meaning of the Act, even though
residing in the official's household. Section
82029 defines "immediate family" to exclude a
child that is 18 years of age or older, even if a de-
pendent for purposes of federal income tax.
Thus, any financial effects of a governmental de-
cision upon an adult child are not considered to
be an effect upon the official or his immediate
family, for purposes of identifying the existence of
a conflict of interest.
The Honorable Deborah V. Ortiz
California Legislature
Dated: June 13, 2003
File Number G-03-106
General discussion of the applicability of the Act's
conflict-of-interest provisions to advisory scientific
review panels constituted to advise state agen-
cies on matters regarding safe levels of contami-
nants in the environment.
Richard Rudnansky
City of Petaluma
Dated: June 6, 2003
File Number A-03-113
A council member with no outstanding campaign
debts does not have a financial interest in deci-
sions to amend the city's campaign finance ordi-
nance.
Rick Cook
City of Santa Paula
Dated: June 11, 2003
File Number A-03-114
There is a presumption that a conflict of interest
exists where the public official votes on a matter
concerning a real estate development within 500
feet of that official's property.
Ralph L. Clark
Amador County Fair
Dated: June 12, 2003
File Number A-03-118
A public official does not have a conflict of interest
if he or she is not making, participating in making
or otherwise influencing a governmental decision.
This is the case where the public official's duties
are solely ministerial, secretarial, manual or cleri-
cal in nature.
Joanne Stonecipher
Bonita-Sunnyside Fire Protection District
Dated: June 20, 2003
File Number 1-03-120
A public official may have a conflict of interest
where he or she is both a local board member
and an employee of an agency that contracts for
services with that board.
Jack A. Sieglock
San Joaquin County Board of Supervisors
Dated: June 24, 2003
File Number 1-03-125
A county supervisor employed by a home health
care provider was advised that sources of income
to his employer are not potentially disqualifying
sources of income to him, since he does not have
an ownership interest of 10% or greater in his em-
ployer. Thus, the supervisor may participate in
votes concerning two hospitals that are sources
of income to his employer, unless the decisions
(Continued on page 32)
Page 32
FPPC Bulletin
(Conrinuedfrom page 31)
will have a reasonably foreseeable material finan-
cial effect on his employer. The county supervi-
sor was also advised of new regulation 18702.5
that describes the procedures certain public offi-
cials, including county supervisors, must follow if
they have a conflict of interest disqualifying them
from participating in a decision.
Conflict of Interest Code
Stephen Shane Stark
County of Santa Barbara
Dated: June 6, 2003
File Number: A-03-015
Under the detailed facts presented, Santa Bar-
bara's community media access center does not
meet the criteria set forth in the Siegel opinion
and is not considered a local government agency
under section 82041 of the Act.
Harry A. Krug
Air Quality Standards
Dated: June 30, 2003
File Number: G-03-133
A general discussion is contained in this letter on
the petition rights of a designated employee un-
der section 87307. Employees subject to a con-
flict of interest code may petition their agency to
amend the code. If the agency declines or fails to
act within 90 days, the employee may appeal to
the code reviewing body within 30 days.
Gift Limits
Vanessa G. Rose
Teale Data Center
Dated: August 1, 2003
File Number A.03-151
Items donated as prizes for a charitable golf tour-
nament do not confer any personal benefit on the
designated employee collecting the items. There-
fore, these items are not considered gifts to the
designated employee. As long as the charitable
golf tournament is open to staff, other state em-
ployees and members of the public, and raffle
tickets may be purchased by all persons attend-
December 2003
Volume 29, No.4
ing the event, it appears that the raffle would be a
"bona fide competition." If so, the raffle prizes are
not considered gifts, but income.
Helene Leichter
City of Morgan Hill
Dated: June 16, 2003
File Number A-03-064
Travel payments made to a council member from
the Pew Charitable Trust but which were directed
and controlled by Rutgers University are report-
able as gifts from Rutgers but not subject to the
gift limit provided they are governed by section
89506(b).
Honoraria
The Honorable Janet Kinter
San Diego Superior Court
Dated: June 3, 2003
File Number 1-03-101
The Act does not prohibit a superior court judge
from teaching a class in Canada. The stipend
paid to the judge would be reportable. However,
the provisions of the Act which limit honoraria and
gifts do not apply to judges (although the provi-
sions in the Code of Civil Procedure do set forth
gift and honoraria rules for judges). Whether the
travel and accommodations to the event are re-
portable as "gifts" or "income" depends on the
specific facts of the event.
Lobbying
Allen Erenbaum
Office of the Governor
Dated: August 12, 2003
File Number A-03-124
A lobbying firm that contacts the Governor's office
on behalf of its client for the purpose of encourag-
ing the Governor to enter into a gaming compact
with a federally recognized Indian tribe, or for en-
couraging the Governor to provide his concur-
rence for taking certain land into trust for gaming
purposes on behalf of a federally recognized In-
dian tribe, would be engaging in a quasi-
legislative proceeding under Government Code S
(Continued on page 33j
Page 33
FPPC Bulletin
(ConlJnuedfmm page 32)
82002. This would constitute lobbying and would
require the filing of a lobbying firm activity authori-
zation form by the firm.
Mass Mailing
Neal Andrews
City of San Buenaventura
Dated: June 17,2003
File Number A-03-100
The mass mailing provisions of the Act do not ap-
ply to a city council member listing his name and
official title on a plaque of donors to be posted on
a donor wall. There is not an "item sent" pursuant
to regulation 18901 (a)(1).
Revolving Door
James F. Bush
Department of Education
Dated: August 21,2003
File Number A-03-129
This advice goes to two formerly designated em-
ployees of a state agency. Both the permanent
and one-year bans are applicable to them. Under
the permanent ban, neither can represent any
new employer before any court or state adminis-
trative agency, nor any officer, nor employee
thereof, in any judicial, quasi-judicial or other pro-
ceeding that they participated in as a state em-
ployee. Additionally, the one-year ban prohibits
them from representing any new employer before
their former state agency for the purposes of influ-
encingadministrative, legislative, or other speci-
fied action for one year.
Lay Holder
Health & Human Services Data Center
Dated: August 6, 2003
File Number A-03-168
A retired senior information systems analyst for-
merly serving at the Health and Human Services
Data Center sought advice as to whether the
post-employment provisions of the Act would pro-
hibit her from accepting an assignment by a new
private employer/contractor, to perform work at
the Health and Human Services Data Center
December 2003
Volume 29. No.4
similar to that she performed while in state ser-
vice. Since the work will be performed to imple-
ment the terms of an "existing contract," this is an
exception to the one-year ban on communicating
with or appearing before her former agency em-
ployer. The permanent ban does not apply since
she was not involved as a state employee during
the performance of this new contract.
Penny Nakatsu
San Francisco Redevelopment Agency
Dated: July 11, 2003
File Number A-03-109
The revolving doors provisions of the Act do not
apply to local officials. Therefore, a former mem-
ber of a project area committee is not subject to
the revolving doors provisions of the Act.
Kathy Lanz-Haupt
Franchise Tax Board
Dated: July 24, 2003
File Number A-03-149
A former state administrative agency official was
advised that the one year ban does not prohibit
her, as a private consultant, from accepting an
assignment to her former state administrative
agency employer in order to implement an exist-
ing contract. Since she did not work on the imple-
mentation phase of this contract while a state em-
ployee, but only on the design and requirements
pre-contracting phase, the permanent ban does
not apply to her involvement, as a private consult-
ant, in the implementation phase of the contract
which is a separate proceeding.
Laurin H. Mills
Superintendent of Public Instruction
Dated: June 2, 2003
File Number A-03-071
A former Superintendent of Public Instruction was
advised that because under section 87406(c), she
was only precluded from contacting or appearing
before "state administrative agencies," the one-
year ban under the Act's post-employment provi-
sions did not preclude her from contacting local
California school districts about joining the organi-
zation with which she was now affiliated. Local
California school districts are not state agencies,
but are, rather, local agencies, and the revolving
(Continued on page 34)
Page 34
FPPC Bulletin
December 2003
Volume 29, No.4
Lobbyist Ethics Course Scheduled;
Lobbyists Reminded Not to Miss Course Deadline
The legislative ethics committees have an-
nounced the scheduling of a lobbyist ethics
course to be conducted in Sacramento on March
5, 2004, from 1 :30 to 3:30 p.m. The location is to
be announced.
Know Your Deadline!
Any lobbyist who has not completed the ethics
course requirement for the 2003-2004 legislative
session remains "conditionally registered" with a
specified deadline to complete the ethics require-
ments. If your ethics deadline occurs before
mid-November 2004, you must take the March
5, 2004, course to prevent revocation of your
"conditional registration."
At the deadline, any lobbyist who has not com-
pleted the ethics course and filed the required
amendment to Form 604 certifying an ethics com-
pletion date. must cease lobbying activity immedi-
ately, is prohibited from acting as a lobbyist in
California until the course and filing requirements
are met, and may be subject to criminal penalties
anc! substantial fines.
THERE IS NO PROVISION FOR A WAIVER
OF A LOBBYIST'S ETHICS COURSE RE-
QUIREMENT OR FOR EXTENSION OF A LOB-
BYIST'S DEADLINE TO FILE THE REQUIRED
AMENDED FPPC FORM 604, CERTIFYING THE
ETHICS COURSE COMPLETION DATE.
Contact the Senate Committee on Legislative
Ethics (Jeanie Myers) at (916) 324-6929, to ob-
tain a sign-up form for the March 5'h course or to
verify your ethics date.
If you have completed the course but are un-
sure whether you remembered to "certify" for the
current legislative session by filing the required
amendment to your Form 604, you can look on
the Secretary of State's web site:
http://www.ss.ca.qov.
At the web site, go to the directory of individual
lobbyists. Review your picture page for 2003-
2004. If no ethics course date is shown on your
(the lobbyist's) picture page, then you must file an
amended Form 604 certifying the date that you
completed the ethics course.
...Advice summaries
(Continued/rom page 33)
door restrictions of section 87 406( c) are not appli-
cable.
Kathryn E. Donovan
California Educational Facilities Authority
Dated: June 17, 2003
File Number 1-03-119
For purposes of analysis under the Act's post-
employment restrictions on former state officials,
this letter assumes that the official had partici-
pated in certain proceedings as a government of-
ficial, and offers guidance in determining when a
subsequent proceeding becomes a "new" pro-
ceeding no longer within the scope of the Act's
permanent ban (9987401-87402.)
Statement of Economic
Interests
Richard Cromwell
Sun Line Transit Agency
Dated: August 14, 2003
File Number 1-03-162
Certain travel payments made by a private sec-
tor organization for a public official to attend the
organization's meetings must be reported on the
official's statement of economic interests. The
payments for travel may be considered "income,"
and not a "gift" for reporting purposes, if the offi-
cial benefiting has provided equal or greater con-
sideration to the person making the payments.
F:\'FORCEl\lEi\T ALTHORITY FOR THE POLITICAL REFORI\I ACT
Type of Enforcement
Actlon
Actions Agall1st
State Officials
..\dministrative
('i83115 et leq.)
The FPPC may impose
administrative sanctions.
C"i1
(SS91001(b), 910015,
91003 et seq )
The FPPC lS the civil
prosecutor of state officials.
The AG is clvil prosecutor of
the FPPC and its employecs.
If the civil prosecutor fails to
act, indi\ldual residents may
file civil SUll.
Crimll1al
(SS 91001(a), (10015)
The l\G, the commission and
the DA have concurrent
authoritv
Actions .'\galIlst
Local Officials
The FPPC may impose
administratl\'c sanctions.
The DA is the ci\i1 prosecutor
The elected cltv attorney of a
charter city may act as a civil
prosecUlor of city \iolations
occurring Within the city.
If the cl\il prosecutor fails to
act, indivldual residcnts may
file a Civil suil.
The DA may authorize the
FPI'C 10 lile a civil Slut
whencver an individual
resident could file suit
The ACi. the commission and
the DA have concurrent
authority
The elected city attorney of a
charter city may act as
criminal prosecutor of clly
violations occurring \\ ithin the
city.
).
FAIR POLITICAL PRACTICES COM
983115
l
~
,
Ij
, II
; l~
1"r3
i~:'~i:"
! ~;
II
IVl
, j~i
': '11 1
i/'i
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)1
,(~
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: ri~
i(~i
Iii
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l' i'f',_~\
, tl,;;..,
I"."
If;
"1 ",',
, );;::'t
[f~
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ii,V!:_';;
il:,;.V
rh-"
r;~''''
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i',t.."
Ji\ft
,}
'j';5
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.' N,
..~'. ;.~,
!:~:p
:.f~'~'
-~
[,,-
W'c.;
e
opInions shall be public records and may from time to time be
published
(b) Any person may request the commission to provide written advice
with respect to the person's duties under this title Such advice shall
be provided within 21 working days of the request, provided that the
time may be extended for good cause It shall be a complete defense
in any enforcement proceeding inlliated by the commission, and
evidence of good faith conduct in any other civIl or cnminal proceed-
ing, if the requester, at least 21 working days prior to the alleged
violation, requested ',\fitten advice from the commission in good faith,
disclosed truthfully all the material facts, and committed the acts
complained of either in reliance on the advice or because of the
failure of the commission to provide advice within 21 days of the
request or such later extended time.
Added by Inltlatl\'e measure adopted June~, 1974, operall\-e January 7, 1975 Amended Slats
1976 ch 10809 I
e.
oeu-
leth-
npli-
~s of
Slats
Amendments:
1976 Amendment: (I) DeSignated the former section to be subd (a), and (2) added
subd (b)
Note --Stats 1976 ch 1080 also prOVIde"
SEe 3 The Leglslalure hereby nnds and declares that the pro\lslons of thIs act
further the purposes of the Political Reform Act of 1974 (Title 9 (commencing
with Section 81():)()), Government Code)
Collateral References:
Witkin Summary ~9th ed) Constitutional Lav. 9204
Pertinent admInistrative rules and regulations 2 Cal Code Reg SS 18320 et seq
~nng
pen-
y
e
~ 83115, Investigations
Upon the sworn complaint of any person or on its own initiative, the
commission shall Investigate possible violations of this title relating to
any agency, official, election, lobbyist or legislative or administrative
action. Within 14 days after receipt of a complaint under this section,
the commiSSion shall notify in wrJting the person who made the
complaint of the action, if any, the commission has taken or plans to
take on the complaint, together with the reasons for such action or
nonaction. If no deCision has been made within 14 days, the person
who made the complaint shall be notified of the reasons for the delay
and shall subsequently receive notification as provided above.
Added by InitIative measure adopted June 4, 1974, operative January 7, 1975 Amended Stats
1985 ch 775 94
e
n
~ on
with
o 14
the
S In
I be
the
on's
Amendments:
1985 Amendment: Deleled "state" before "agency", before "offiCIal", before "elec~
tlon", and before "leglsJatl\-e" In lhe first sentence
Collateral References:
Wilkin Summary (9th ed) ConstitutIonal Law S 204
Perlment admlnlslratl\C rules and regulations 2 Cal Code Reg SS 18360 et seq
177
'., <;,.JF
n:-~)::
i l'\l,~ ..
I :-i;?!~~,}:
iVE,,-ill\1 CODE
Ity, elt)" and county'
Ie pLl~CJ\es cf the l'ol)~I[a:
Go,rrn:LC:l: Cede
n a c3nd:ddte COll-
y person, except Q
.ppl\
Itributions from the
;e of payroll c\educ-
Ions, provIdes cdl or
ltmns, set" the pol!-
om' ,:e funds
lbe I:jl ]1
he Polltlul R::!~'lrn ,A.:I 0;
'ode
ieuten;lnt CJO\ eroor,
Seeretdry of Stilte.
"mber of the State
\1\[' July 7 2000 appro'cd
>verT,bc:- 3, 2()UO Operdli\e
" and rn~:nbt'T oi tile S\Jle
aCI sc\erabllll},ilndelec
12' Go', CI
GCJ\TV\\lE\T CODE
S 83116
S 83111.5. Abridgement of constitutional rights
The CCHTllTllSSlon shall lcikc n(\ dct]nn to l!llrkrneH thiS tItle that v,ould Jorid,?e
constllutlOna] guarantees of freedom of ,pccch. that \>"(JuJd deny any person of
hfe. llberl:. or property \\Ithnut due proi..'es\ C!f ld\\', or Ih:11 \'.'ould deny' any
person the equal protectJClIl of the Ja\\s
.\ddtC Sld','- l(!9S -:h ~=s ~ l /\R 14.4', cl-:c\ ,C'\li~l:SI 2:: ;q:;:;
Nolt-S:Jts iCi'iq ~h 2::'s pr('\I(k~
SEe::' The lcg;~IJ:',lrt h:lcJ<, dr:J~k,lc1ro 1;,;]1 r:1C ~'T,Fl",( []'- ,')[ I,h.s ;le'. !Llr1h~r Ir.c purp(\se 01 Ihe pol,lIcal
Refurm ACI 01 .Y-:-4 v..1\!1,:' the ~TICJI'"r,g DI ,uhdl\!<,1( r, ':<1', :'( SC~I;,)n 81'~1\2 cl the Co',cncr11erH Code
S 83113. Commission's duties
The commiSSion shall. Jrl ad(lltlOn to Its other dutles, do all of the following
(3) Prescflbe forms for reports, q;jtements, Ilotlces and other documents requlfed
by tillS utlc.
(b) Prcp3re and publ1:;h manuals and JrlstrUC[lonS settIng forth methods of book-
keeplng ;::md preservatIon of records to faCIlitate compliance v</Ith and enforce-
ment of thls tltle, 3nd explaInIng the dUlles of persons and commIttees under thl:;
title.
(c) Pro\'lde J.SSlstance to agenCIeS and puhllc offiCials In 3dmln1~tef1ng the pro\'l-
slons of thiS title.
(d) :'\1alntJIn a central tile of local campaIgn contnbutlun and expendIture
ordInances for\\ ;.lfued to it by loci! gCl\ ernmen\ agencIes
feY Annually publish a hooklet not later than March I that sets forth the provi-
sions of this title and includes other information the commission di'ems
pertinent to the interpretation and enforcement of this title. The commission
shall provide a reasonahle numher oj copies of the booklet at no charge for
the use of Kovenllnl'ntal agencies and subdirisions thereof that request copies
oj the booklet. The commission mav charge a fee, not to exceed the prorated
cost of producing the booklet, for providing copies of the hooklet to other
persons Qnd organizations.
,AmenJed S:a:s 1999 ch 855 q 1 \SB i()=~,"
S 83116. Violations; Hearings; Cease and desist orders
\Vhen the COITlmlSS1on determlnes there IS probable CJuse for belle\'lng thiS (ltle
has been \'loI3teu, It m3Y hold :J heaflng to dc(crrmne If a \'1013llon has occurred
Notice shall be gl\en and the hearIng conducted 111 accordance WIth the
Admimstratl\c Procedure Act (Ch3rter 5 (commencIng wIth ScctJon I] SOD), Part
1, Di\']slon 3, Title 2, Government COUl.:) The commission shall ha\'e all the
pov,:ers granted by that chapter \Vhen the COITlmlS\IOn determines on the baSlS
of the heating that a vlolat1on hJS occurred, It shall Issue an order that may
reqUIre the \Iolator to do all or any of the follOWIng
(a) Cease 3nd 0l::'dSl \'iolatlon of thle; tItle
(b) Fde any reports, statcments, or other documents or lnformallon rcquued by
thIS tllle
(c) Pay a monetary penalty of up to hIe thousand dollars ($5.000) per \IOlatlOn
to the General Fund of the state When the CommIssIon deterrlllnes that no VIola-
tIon has occurred, It shall publIsh a declaration so staung
:\dded Slats 2000 ch lO~ 96 (S8 1223) el~ectl\C lul) 7 :WUO, approved hy I!-Ie v,o',ers at the November 7,
2000, generdl elecllon (Prop ,,4i, effec'l\'c Nc\\em~Cl 8, 200U. (jpcra:i\'t JanuJr\ 1.2001
Editor's '\'o(es- Th:~ \ectIOI~ <J- JchJe:::I by P[Of 9, eHeu:ve June 5, 1'174, v.as ilho amenJed by vCltns. Prop
689 1. cf1e~tl\~ JlJlle 8,1988, operallvG JJm:i.Jrv 1, 1987 Propo,.r:on 6S v.a~ held IT1Clpcratlve In liS erlll[cty
hy the CJI:furrlla Supreme Cour1 In T,p,paJo, to L:m,t CJmpJlgn Spend:;l!:, \ Fail polillcal Practices Com
nll~<;lon i199(!1 ')1 Cal jd ";':',1 See '\;l)I~S u~ DCClS:O!IS ur.:kr PropOSilwn t\B rrecedmg SectlDn S5JOO
:21 Gee Cl
B~gl~;);ng I~ 1992
,tallcs ,nGI(.JIC ~'l~nbCi 01 Jdd,liVn\ .. . wdlcJle OrTlI5s.0n,
143
98.11 II,
Fonner S~C1I('n~
CO\TR:\:\lE:\T CODE
I-fin;"" ~ ~-3.1f- ',T,J'.U Ie' riw ;'r~,t'li: :cn. v.,J, aJcicd )~y :nllldl:\(:: IT,CJ':;[C Jdu~):e(. J,lrlt 4 ;9-:-4 i\ptr~
[j\~' ;""IL,,:['. - j9-~ 2lT'crdrTlcrll ~~':!;~'!ecJ b\ '~ltno_ Prer' 6i:1 S i trie,',I\~ 1.;1](:' E, i'-!cr:. u!-'tJi1t:\(' JdnUJ~Y 1
]l)b- 1'1l'l' 2'1:" i; :S, (:'Ir:' \; '\:'\cr,hc~ I', j',;JCJC c'rCrJ,I',[' Idn,:jf\ 1. [9:/; <J:ld repealed S:d!" 20(10 1I1 J02
~~.:; 5 chl:C~I\rl ;1', ~ 21J()l,' dp~)r()\(;d ct' [he q)ltlS (II (r.e :'\c;\cT,bn - 20(1(" g~ner<i] (,nltCH) d'rop 34)
dic"I,'\l' \o'_'rLt)c: b :'.','DO, Ureidl:\C hfl~:j;: 1 2'JUJ
Fdi1or'~ ''''Oll'S F,., dings Jrl(~ d~'-]2.~;j::CI", opcr:J[IH c:;Jle an,j Jppllcabllny oj a;:, '>C\eratJl:ll\ Jr:c tlc~
:l( '('.1" ti,l' :00(: '\,'u:c ic,LulA;:1g Ci; C ~ i':2C116
983116.3. H(>'luirement of 'Hillen reasons for rejection of administratiH
law judgt'ls decision
\Vhcnen'f" the commISSIon rejects the decIsion of 3n adrmnlstrall\'C law Judge
made pur-.;u,mt to ScctJOll 11517, the COmITllSSlOn shall state the reasons III \\'0[-
mg for rClcctJng lhe deC1S10n
Added Sta:" ~0;,l;; lh 2T ~ I ,:\H Sl~'
~ 8.1116.5. Liabilily for ,iolations
Any person \\,.ho \ !o!ates any provIsion of IhlS title, \\,ho purposely or negligently
causes any other person to VIolate any pf()\'IS10n of this (lllc, or "vha aids and
ahets any' other person In the VIolation of any provision of this title, shall be ll~
ahlt under the provisions of thIs chapter However, this :;ccllon shall apply' only'
10 persons \\'ho have fillng or repor1lng obligatIOns under thIS title, or who are
compensated for servIces lllVol\ 109 the planrlJng. organiZing, or dJfcctmg an)-
actl\'lt)' regul8.tcd or requIred by (hiS tItle, Jnd a vJOlatlon of this section shall
not con'\tItute ~ln additIOnal \ IOJatlon under Chapter 1] (commenCIng \\ Jth Sec-
tion 91(00)
1;"JJd S',d: ::>")(1 en ;(.1: 9 q :SB :::31. cffecti'.e
[cr,t:JI elc~tl':Hl IPr:1p ;J'; e;tu:::.c \()\cm:>er S
Former Sections'
b!: --; =UOU JppTC'"ed h:-
:i)(j(I,crerdlllcJdI,L:Jry I,
vctc~ a: thf' ~::J'.er.lhCl 7, :'OOU
20Cli
I-i'~~n ~ S~~1:6 5 ,;ITI.i,H te' :rl~ p;e\cnl -"l'~IIC'rl, 1',1' JJdeJ StJI, !0~4~!-: 6"'0 ~: dmenCJl1ent Jdc'ptcd 1;:
\,--,t'~r, r'r(T 2':JR S =li e:fe:':I:\t ~O\'c:n~u (, ;996 Upcrro'llf' J.1LJiir)-' 1 19tJ7 dnLi rC['tJlcd S:dl' 200n c.h !02
~9 c ~. cIlc",:I'.t ]o.:1} ~ 20DO, dPf1re,ej ~J', the \c:el'1 JI Ihc \'oleIT:ner '7, 20(10 g\:nu;;i ek;.;lwn, eifect;ve
\'o\{;;r;-Tbcr k :OO(), (),;tTJII\'t JdnCld~Y I 2[11);
Edilor's !'I'ole.'i --Fef f1:1C; 'lg'o and de~larJtl(ln~, OpCr:ltlle ..Jdle dnu ~pp!ildll!II\' of %:1, sl?\tlabll:t\, JflU elee
lion, ,ee the 2U()O ~()iC !e :iowlflg (,en C ~ 's2D16
l\OTES Of IHf'ISIO'\S
1:1 a [1rTI~[t erdu,u:ment Jction pur,uiJr.t 10 CUI
Cldf:, ~ 81002, "l.2l:ld If alkg:ng !hJ: a !JoLlleal dC
tlOf) UJrnmi'lec r~ll<,cd ;l:>d conlrlbuted J :a.ri'e <um nf
mone; for a :a\ reduC:lon mu\emen! thJt "-as SlCp
P('r1I:1g a :~\ I :111:3tl I c; and tha: the,e contrlbutlo.1::
"-e:e not re,'oncd JS rl'qLlred b: GU\ Code
~Q 84!()1 and S42()O Ihc ITTa! coun tr-red in gr:onllng
slimlf,dry j'JJgment lur (Lienddnt m~rkfllLg company
dod TIS pnnClpals Tht'. Lumpany "-d, al bnl a lam
pdTtn :nJIIJgc fm the :d\ red~ct:(ln rnc)\'c:nen: ,\
CdlllpJign mdr.agfL "-a" 1I0t ITable under the un-
a:TIcnded \CrSh')r1 of the PO!ltlcal Retorrr. Act of 19'"
(Go__ Coue, {SJUOO CI seq) fur !JI]lng 10 repun a
umpa.gn expendilurc 0; conlrlbutlon, and under the
npilndeu ITab::lt')' of Cie\ Code. S 8:J116 5, enaLluJ
TTJ lYS4, Ilo!a:JOns by persons o,her than elecled of
fic IctiS, lJndIlJa!e~ and trea~urers can oniy be ad.
dressed jfl an jcJnlln~stfa!J Ie ae\IOn, nOI by a prr\'dte
cau~'t of njClicl1- HuV>t'ler, since Ihe td\ reduction
mo\'Cmen! fal:cd '0 properly deslgrldte d lTed~u~er
Jnder Gov C>de, S 84102, thele WdS a qUesllOl1 01
fact as tc v.he!her the cO'TI,:1dn: ',J,as the mcnement's
ce I'-lLl':) IrCd,urc~ \lcCdcTie-. BFC DireL-t \lJrKet-
lI1g (19SH, 41h f)IS:) 16 (;11 ,>\rr Jlh 1262, 20 Caj
Rptr 2d 1.98
LotJbJISIS '"ho "miMe :he PO~]llcili Refurm Act of
: ~)74 (Go__ C ~ 8] OUO c< seCj :' h: mdklng d campaign
lonlflbu(Tl1n 111 someone else's name are subject to
CllmJ:'Ld ilJbdlty !\Ot:lI0g Tn a ]98--1 amCldmerH to
the ALl prlnlclng iur adrr.Tr.:SIIJIIIC SanCII(,ns (GO\ C
Q 8:~ 11f1 Si reHe~ted dn Ol--,JCU or Inlent 10 narrow the
scope ut Ihts prce~ls:lng IIJ~III(Y. on [he contrary, (he
Leg:slature sough I to nf-land th.e cla<;s of person~ v.ho
could be held ac:courllJb!e for reporllng vTOlatlOn'>
Gnder the /'Ict. nOI to lnnlt liablilt.,. for money laun.
clUing by !obbYISlS The prOIISIOr1S of 9 83! 16 5
r-nean :nal admlnIS!ratl"c ,anctlons, bUI nOt 'addl-
tl('na!" cl\:1 or cnmlnal !labil:IY. may bc Imposed on
pi'r<,ons wllh reponlf'g obl,gallf'ns I.\,ho Engage In
newly prohTb:leu conduct a, well as upon persons
new!) regulated by the All People \ Snyder (2000)
22 CaJ .:Ilh 304. 92 Cdl Rptr 2d 734, 992 P2d ] 102
144
Bcgll'nJngln:991
l/ai!o ,nCLcale ~hJ.~go or adGltliJf,\ . . . IrlUICale 0rnISSI("n,
:21 GOy CI
GOVER:\\1E:\T CODE
S 8.112.:1. Adjustments to re
The commlSSJon shall adJUst
ture ]lrnitations prOV1:ilOnS In
arv of every' odd-numbere(
C~nsumcr Pflce Index Tho
hundred dollars ($100) for II
($1.000) for llmilatlOns on e
,AdJed 5:dl<, 2000 eh 102 ~ 11 i5B !2
2000. gene:a! ciccl:on (prop '.:Ii, ehe:
former Sections:
F()rrner S S'" 12<1, sl~I:Jar 10 Ihe rTe,:::lI
:996 anu fl,'L'J:ed Sldl' 20UU (10. j(1;'
200U, gene:d: l':eCllon (Prop 3<1; c:fec
Editor's ~{)ll'S-For nnjlng<, and :Je.:
IIOrl, see the 20UCI NOle lullo',J,!llg (,o\'
o
~ 84]01. Filing organizatio
expenditure committee; P,
(a) A committee that IS 3 COl
shall ole '\lth the Secretarv
after It has qualrfied as a co
statement of organlZatlOn \\
of the statement of orgalllz;
the committee IS reqUIred t
to Section 84215 The orrg
be tiled WithIn 10 da,s aft,
Secretar\' of State shall J"i
of orga~l7.ati()n and shall n(
State ~shall send a cory ofs
elections official of eJch u
elections official who recel
Secretary of State pursuant
the clerk of each cIty 111 th,
(b) In addItIon to fihog the
(a). If a com mil tee quah!H
8201.1 before the date of ar
requucd to flJe preelccllor
campaign statement requIre
842007 or R4200.H. the c(
WIthin 24 hours of 'luahfy
reported In the statement
subdJ\lslon shall be hied
requlled to file tbe angInal
i2', GO\ c~
I/Q!t[\
rjD
,'\~lEJ\T CODE
'CJ to \\ Imh the SS$
~ required to be larger
l<ltch' follo\\: the name
h(lC:itcd Oil the ballot
l(~ldJleS and mcJSLHCS
t IcJ"l once In at least
f lhe c'dnJldatc, or the
a\lHC
llicr \\ ho IS d memher
1 the rn2tler appears hy'
ITllliCdlJtel)' belo\\-' the
'ss thJn 'J-pOJn1 roman
) the background so as
::.julrcd In the case of
1 ,.,n of subdl\ ISlon (a).
C ,I Df SectIon 84219 by
~ OJ rl(jSltlon appears In
_'e pnmaril)- Cormed 10
(In\!llute d paymen1 to
l~dl ;:11\0 be deemed to
e d ~led to Sdllsfy the
m" Je
~I~', S'"m :99~ ~h ';'7~ ? ' (AB
I, d~~~\".l' Sq:J:~!~ib~T ~5 1990
'~": ,-; ,\ t J<l'1UJ:'> 1 199:
"i: I jp~W,;f' ), enaued
rl ,21 ..tJ,'jecl ult)j (J)(5)
;n i ~ rnd';cr I'm dot', II ][nr~)
:H (It---'f'O:t ()I)e or more bailol
hi,: 'C~r.cr,Le u! ,u~d (al( l), (2i
> p:'~l'd~:')- hrrr,nJ r,l SJpport rr
~OIC lS J fllJI!n" in [he second
1'rol' (': ,:'ppClse one or more ba;
,tn:nce(1f,uod:,h)
01 ~dn.JiJJle" JnJ measures" al
[)I',lb',lluted SeCl10rls 2UOU3
"'ne cf ,ne 1~I<;tr, <;' (If\tr .. 01 sl ale
sd:SI:[L;!lng (ai' '01 edch sJde ur
oj ;i ,idle rnd;ler or at the lOr of
~e :u; [he lu~mel ~eco~,d and \hnd
leltS~~I~lly "'T!P:\' endorsement of
~UL ;(1, M:\ Issues se~ forth In {hi,
1e~,1l,e ...hlCh J.S deslgn3\eJ by an
l'Iilfm, S[ieet ~jorcss. and city of
'FL';C unc or mOIl' ballot measures
PP(J~ (':1 [he ,dine s;de or slIrf<l:e
j 5i'illb,;lwled"SSS"lor
) d~J k'lIne! suoo (a)(6) which
"'!)'l\
(21 Goo C1
GO\TR'\\ll:\T CODE
~ S~30S
reJd ,'(),', Any ::Jnd,eJJre endl,:,':rrltn; dprCJr:n['. ;n Ihc ,hie mailer Ir.dl differ" frU!'i lill" ,:ofhuJI cmk,C,e[!iCli
uf rhe: r():I:I~,,1 ;:'Jrt\ \.\.nl(h the mdlie Jflpear\ b\ ITf,rcsf'Jl[diIUn or nidlc:a t,) rCrTl:'tn: IS J~':l':np,;n:('(j ;1')
:11e,~lalcl: oel(,\', lile l'I\JC\[Selll~'rJl, II~ n(1 Ins [h;111 I) pc'lr.: furrv..'1 bold~'dce lyre '",hkh sral', bc :n d ((;1,11 '.J[
pnni 1113[ ,or-,:r.JSI~ ',,"llh the rJLkg:o,;nc! '" a<; i(lJe edsl!' Il'g:hk, the fc'!~c"Jn~ n:>l:ce THiS ]S ~OT THE
POSlTIO" OF THE (p0I1I:C31 flMly which 1IIG :T,iJ,lc a;'pf'z:s l-;)-' ~errf'se:lIJt1()n:J1 ,~~II(;a :il :':~rc~c':il
PJ-\RTY
'Otl'~St3l" 1091 eh ,W3 Slats i993 ch 4'72 r~u'l,je
Sl-L 3 T!:c Legr;L;luTc fll1ds and dcclare" :)1dl the rru' I ',lOllS of IhlS JlI fu",h~r the pGrp~'\n (\1 ir:c I'c;;i(:cJI
Rdmm .A.c: uf )9'74 \.\.1[Oln :h\: rr.fdn:ng of ~lIJd]"h1()n IdJ ()j Section bIOI::;Ji :he G(j',er'I11\~r!l CoJc
'Olc---StJ:S 1994 ch 92] pr()\iL!ts
SEe r'l The Leg:sLit'J~e declares dldl \he: chdnges ITIddl' c! lhl\ dU are '~chnlcJ: (lnd n():l';u~,",Jn\l\ e In
nd[Ure, Jr;d Jlf ne(l'(;"llald :": tbe remgJIlI?J!IOn oj :lle E:eCllom Code by S8 :547 Df the :993.94 RegL.:df
Se,slon
!l 84305.6. Slate mailers different from ollicial recommendation
In addlllon to the requirements of Secllon 843055, a slate malier organizatIon
or committee pnman]y formed to support or oppose one or more ballot measures
may not send a slate mader unless any' recommendatlUn in the slale mZlller to
support or oppose a ballot measure or to support a candidate that IS dltlerent
from the offiCial recommendatIon to support or oppose by the political party that
the mZJJler appears by representatIon or IndiCia to represent IS aCcompanlccL Im-
medIately below the hallot measure or C<Hldldate recommendatIon In the ~]ate
mallcL In no Jess than Tlme-p01nt roman boldface type In ,] cn]or or prlllt that
cunlrasts \\ Ith the background so 3S to be e::!sIly legIble, the fullc)\'-\-l!1g nut Ice
'THIS IS NOT THE OFFICJ..\L POSITlO:S: OF THE (politIcal parlY that the
mailer appears by rcprescntatJOn or IOdlCJJ to represent) PARTY"
Added Sid[S 201JC' cr. 1()'2 ~ I': ISB 12::'.') dfe~II',e Jul: i ~00U, Jpprr"ed b~ Ihe '.(J~Ci<; dllhe \'o'>o-:->.b(;[-c,
20UU, genuJl CiC~il('n (PrOF Jj\ d~e~::\'c \'c\uTlber S, :2000, uru.Jlnf Jil:liJJ.[: : 2U()1
Editor's '<ulcs--Fm r::ld~ngs ~'ld dec];'\f,r,fjrIS ope;a lIe dJle Jnd dflpllcab:]:'" 01 (le[. S~\C;u!llll'> Jnd eie:-
Ilcn, see llie 2(J'~1{1 ;...o;e fu:lu\.\.!rlg Ccv C ~ S'20~6
!l S4308, Contributions to ollieers of agencies; Required disclosure
(3) The dcflflltlOns "ct forth In IhlS subdIVISion shall go\ern the JrlterpretatJon uf
this sectlon
(1) "Party' means any person who liles an appl]catlon for, or l~ the subject uf.
a proceeding invoh'Jng d lIcense, pcrrml, or other entitlement for lIse
(2) "Pdrticlpant" means an')' person \',-'110 IS not a pJrty but \\110 aCllvc)}' sup-
pOt1S or opposes 3 partICular deci510n in a proceedIng invoh-'lng a I1cense, permlt,
or other entltlement for use and \\-,110 has a financial Interest In the dCClsion, as
descnbed In Arlicle 1 (commenCing "Ith SectIOn 87100) of Chaptcr 7 A person
acti\ely supports or opposes a particular deCIsion III a proceeding If he or she
lobbies In pCL"on the offIcers or employees of the agency, testlt-les ]n person
before the agency, or otherv.'isc acts to Jnfluence officers of the agency
(3) "/\genev' means an agene' as denned In SectlOn 82003 except that It does
not Include the courts or any agency In the Judicial branch of government. local
governmental Jgencles whose members are dlfectly elecled by' the \oters, the
Legislature, the Board of Equalization, or constitutlonal ofilcers However, thIS
seelion appltes to any person "ho IS a member of an exempted agenc' but IS
acting as a votlng memher of another agency
(4) "Of11ee(' means any elected or appOlnted otilcer of an agency. any alternate
to an elecled or appoHlted officer of an agency', dnd any" candidate for elective
offIce In an agency'.
';2] Go', c:
BEgl1!n:rlg In 1992
1/allo ,nd:e "I~ ch~ngr, or dd,j,:IQn, . . . Imjl~ <l[e Orr.L",Hlr.S
171
~ 843118
CiCJ\TR:\\1L01 CODE
(5) "License. pcmlic or other entitlement for use' 11ll'~inS :-:11 hU.<';lne:-,:,. prutcs-
"JuflaL trJde Jnd land use license:; and pC!lllilS and all other enlil!emCl1!\ fOf use,
Including JI! entitlements for land use. :ill contracts (other than cornretl1J\el~
bId, labor, or pcrsollJI employment contract,,), and dll frarkhJ"e"
(61 "Contnhutlon' Includes u)111nbu(Jons to candldates and CUmmltlees ]n
tedera!' stale, or local elections
Ib) r\o officer uf an 3genC) shall accep!' sollell, Of direct a contnbu(lon of more
than two hundred fifty,' dollars Ct2S01 from an)' party. or hiS or her agent, or from
:iny participant, or his or her agent. \\hile a proceeding Jllvohl/lg a license,
permit. or other entitlement for u<,e is pendlng before the agency and for three
months folJowlng the date 3 final deCISion IS rendc:red Jr1 the proceeJlng if the
officer kno\\s or has rcason to know that the partlcpant has 3 (manel;}] Interest,
us Ihal term IS used In Anlele I (commencing With Section 871(0) of Chapter
7 ThiS prohlbltlOn shall apply regard!e" of whether the onilC! accepts, so],ells,
ur directs the contnbutlOn for hImself or herself, or on hehalf of all) other of-
ricer, or 0/1 behalf of any candidate for office or on behzlf of :.wy commillCC
(c) Pnor to rendering any deCISion In a proceeding Involving <.l l1cense, permit
or other entitlement f(lr use pending before an agency, each otilcer of the agency
who receIved a comnbutlon WithIn the precedl1lg 12 months In an dmount of
more than Iwo hundred hfty dollars 1$250) from a parry or from uny parrlClpanl
shall dhclo\e that fact on the record of the proceedIng, No officer of an agenc)
shall make, partICipate in makJrlg, or In any' way' attempt to use hiS or her of-
ric'l<:l1 pOSltiun to intluence the deCISion In a proceeding II1\'ohlng a I1censc.
permit, or (lther entItlement for u....e pending before the Jgcncy If the ofJl:.:er ha.':.
\\illfully or knov,'lngly recel\'ed Q contnbU!lOn 1/1 nn am0unt of ml)re than t\VO
hundred tifly dollars ($250) within the preceding 12 months Irom a parry or hIS
or her agent. or from any' particlpaJlt. or hiS or her agent If the officer knows or
hilS rcas(,n to know that the participant has a finanCIal Interest In [he deCISion, as
lh;jt term is descnbed \\'ilh respect to publle officlals In Ar1lclc 1 (commenclng
\\ IIh Section 87100) of Chapter 7
If an officer recel\'es a contrIbution which \\'Quld othcf\\]se requIre dlsqualdlca-
[ion under t111S section, retums the contrIbutlun wlthJIl 30 days from the lime he
Dr she kno\\s, or should ha\e knU\\Jl, about the contnbutlOn and the proceeding
InvolVing a ]Icense, permit, or other enlillemelll lor use, he or she shall be
permitted to partlclpate In the proccedlllg.
Id) A party (0 a proceeding before an agency In\'ol\'ltlg a license. perrlllt, or other
entitlement for use shall disclose on the record of the proceeding any contnbu-
tlon In an amount of more than Iwo hundred filty dollars (5250) made \\lthm Iho
preceding 12 months by the pany, or IllS or her agent, to any unjcer of Ihe
Jgency. No party, or his or her agent, to a proceed 109 Iflvohlng a license. permit,
or other entitlement for use pending before any agency' and no partiCipant. or his
or her agent, 1I1 the proceeding shall make a contnbution of more than tv...'o
hundred tifty dollars ($250) 10 any officer of thaI agency dUllng the proceedll1g
and lor three monlhs fo]lowing the dale a tinal deCISion IS rendered by the agency
In the proceectll1g, \Vhen a closed corporaLJon IS a party to, or a p<lr1iClpant in. a
proceedlng involving a license, permit, or other entitlement for use pendlflg
hefore an agency, the majollty shareholder IS subJeel to Ihe disclosure and
prohibitIon requIrements specltied In subdi\LSlons (b), Ie), and thiS subdiVISion.
(e) NOlhlng In Ihls section shall be construed 10 Imply thaI any contnbullon
subject to being repor1ed under thiS title shall nol be so repurred
,\!,lendu~ Slats ]')/1(,) ch 7fl4 9 2
172
BCgH\i1lrlg ill ]992
Ilailn Indlcale change, or dddlllc'm, ... mdlLale omISSJ,,!1,
,'21 Gov CI
GO\FR\\1F0T CODE
.\rnt'ndrnenl~ :
1989 .\mrndll1l'nl: III Sub,I,I',!,';! '''I.::
IJr, ,~2~U: '~'r r:C:.'le \\~)~:C"t'l : J,TeJ:~ I
I" tile ~lrSl StnIL:I:~C (}t ,1J'~d ',~:' j::1 t',d,;:~
':f [,-\I pr,ni,'ic:1 huv,C\l'r "',,Jt bl'i(
o C, (),,::; " (' n ' e n l e : n 'L< ,,(I ': ~ 1 n J I -al ,u!::, ~ i
(t:
Edil()r'~ 'oles- f"H ~,)n(o,mJ:J \),:1;1 P"l
~ S~ )[15
Disr\c
[,AclcillICW aL1uplcd by WIers, Pror '2(
:997 FC1rmn ArlJcie 5, cnl1tlcd ""J
SJ5!4, \\J~ added SiJI, ]97
Edilor's :'\olt's-Fr)[ con,lru:ljOr., :,q~I':Jl
conp,'-llng :J;;] 101 rT.eJ~IJre5 dllU C'P<'! a: I \ e (
C ~. ti5: llO
Scc:]on
S4501
R4502
8~503
Y4504
,45115
845116
8c15117
84508
8450Y
S45tO
. ,\d\er1]scmcnt '
TumulJII\'e ccntnn
RcqlJlrCmCn!
IJcntJ!lCJ[]un uf com
Lse Df nun:":JlldIJ,llc
Independent c:\pendl
PrJnt Size and mdnnl'
!\1aJDf darlors
RcnC((j(Jn uf J!Y1cnJ(
LlabilJl\' In (1\11 or
dlT]()U;ll recovned
S 8450L "AdHrlisement"
(a:1 ,\d\ erl1scment rne,IOS
3ulhonled and paid for bl 3 P
or opposlDg a candld<:lte fur cle,
(b) "Adn:rtlsement" docs no
other than J political p3r1y 10
Inches In diameter, a bumper
advcr1lsement as determined b
,;ddlllon JJop!td b; VO!U" Prop 2U8 ~ :"
Former Scc(ion~:
I-onner S 84501 re:ailng 10 dchnlllL'n ot
Y [!jS8, and repeaied Slals I Y9? c~ 1 -, J
Collateral Reference,,:
Pt0po<,r!lon ~()b nev.. chililenge, 10: polH
S 84502c "Cumulati,e (onlri
"CumuL:lll\'e contributlonS' r
begwn1llg the hrst clay the stdt
[21 Go', c;
jll1!r(:;lnd,
GO\'fY'\\IL'\T CODE
i
';'" 'rcenl c'd the A~"cmbh
an C]Cl:ll\.1r; yea!
or SPC'CJ::.ll ru[wff elee-
. liars IS 15,OUO) elf more
liars iSI <,I)I)(J) elr moee
or b\ a cnrnmlttr.:c Or
5Upp0r11ng hIS or her
'\ 5ubdl\'ISJOn (c) of Sec-
who IS being 3udllL'd
that the COllHnltlee hJS
"subdJ\lSJOIl of Sec-
';of or In oppo...:..ltlOn to a
'that the commIttee h~s
on such measure or
(h), the fair Pol1!lCa!
-'stricts to he audited on
)e made In public after
.' g the general or specla!
- elecllOn at \\ hich (he
and lobb\lSt employer
:J>f odj,numbered YCJIS
(SB 1753:
lion, and (2i Jd:Jlng5ubdm
shall be
[21 Go>, c~
GO\ LR'\\lL'\ I CODI,
S 91000
pcrfnrmC'cl lHl a hiennial h:bJS and shalj ccner report\-; filed chmng J f'Cflod of
{!-HI ytars'
(hi 1f a )()bhJj;~g 1nm nr lobb)l~t cmplo)t'r keeps J )eparalc aCCOUJl[ fur all
receIpts and pJynlL'nlS for IA 11Ich reportIng 1S required hy this chapter, the
rL'guln~ITH:'n! of ~j1 aueht undn "ubdl\'J5,)(ln (iJ) of SectIOn 90001 shJ]] be sJtisfied
by an Julht of :ha1 account i.mJ the suppurtlng documentation reqUired [0 be
mJlnt,;][lcd h: SCL'llon S(ll ] 0
Ie) No audit elr Ul\ C\llgaliol1 of (iny cimdJdate, cOlltrc)!lcd commlltee, or cornmi!-
lee pnmJTl]Y supportmg or OrrO~;jng a cdndlddlL' or a measure In connectIon \\Jlh
a report (Jr statement requneJ by Chapter 4 of thiS title, shaJl begin until after
the l:lsl dJtc for tillng the firq repun (Jr statement loJlo\\lng the gcneral. runoff
or srcCiaJ electIon tor lhc offIce for WhlCh the cancJJd,:He ran, or folJo\\'Jflg the
electIOn at \\ hLCh the nlt'J."ure was adopted or defeated. e\Ct'pl that audas and
In\estlgatlOns of statt'\\IJe cJnJidJtes, then controJled commIttees, and commJt-
tees prlman]: supportIng or OppO.~lJlg those stJltI,.\IJe candldates \\.ho were
dcfcJled In the prJTnJry electJOI1 and \\ho 3re not required to File stJtemenrs for
the general election mil) begm ,Jfter lhe last dale fur fj]lr,g the Firo.;! report or
statement tollo\!> lflg the pnmary ckctJOn \\"hcn the campaIgn sttlternents or
rcpurts of a cdndldJ1C, controlled comrnlttee, or a commlttee prJnlarlly support-
Ing or Opp(1Slng J candIdate Jrc Judl!cd and ifl\co.;!lgatcd pursuant to Section
9000J, the Judlt and Irl\CstlgatlCHl shilJ] co\'er Jll camp<llgn statements and
report~ filed for the prltlldry' dnd general elr speCIal or runoff eleclrons and any
prnlous CJfllpdJgn statemell1 or report filed pursuant to SectlOn B4200 or S4200.5
SlnCC the ja"l eJcctJOll for lhJl office, hut sh.:tlJ exclude all}' stalements or reports
\\hl(h h:l\e prc\'Jousiy been illlulleJ ~'UrSllJn! 1(1 SectIOn 9000 I or 9000J \Vhen
the call1p<llgn qJIClIlcnts or repun" uf ,I cornf11JUee pnfTl,H1ly supporting or op_
posing <l meJsure are JUdllCd and lJl\cstlgakd, the Judll and 1m estlgJtJon \hall
((J\er alj cJrnp<.lJgn stalements Jlld rep(lrt:; from the heglnnmg date of the Rrst
CdJ1Jpalfn )[Jlement tlled hy the CC1nmlJltee III conncctliHl \\llh the measure For
aj] other committees. the ;ludn and In\c,..;;tJgatlOn stull co\er all campaign stJte-
ments fIled dUring the prl:\']OUS \\\0 calendJr yc:.ns
A~ell,led Sldl, I Ci9'f ch iIY,: Q ,513 2'~',
Amt'ndr7l('nt.,
199~ Amendmt'nl. AplCll,.kiJ s,;bu 'al b:. (1) s,i>l"u~,ngJ t!,clln;~1 !e\f' ;!,') ;jl)n~dj ,Jnd r1}il',,1 \CdfS
for 'ulle :'(dl
i\OTfS OF DH.."SIO:\S
Cell C ~ 9(Jll(C(~) Sldlf~ I!',~I :hl' I:mc iu~ ;]:1 aL.;c!11
of Ihu:,t" re(j',Jlfl'J 10 !'ic lC,'[lI"l' ,,1\ 1;1\ 1111,' ba,I,;[
mta\urts i, tr.c la'i C;J[e ic}! fl;:ni:: lile hrS! ;cpcrl I:r
SIJ'nnenl I('~lcv.lng I;;C ,L'e~ler.li fl:r:o)f or Si~CL;"i
electl,)/1 ai l'.hJt:h the me;;su:e ,o,JS ;d(lp'cJ c'~ :Ie
fealed Tile :d5( CJ:I; jor riiln)C repO;I\ i,S ge,urle;! by
(jO\ C S ~~:'CiC, v.il"h p:Jn]V\[;;iE'.s :,'121, I'.llh 1:Ci:C1Jll
exccpll~)f)S. lht: ~1t;;IJ!lnc lel! rcp'.W.s is no iiller Ihdll
j.HluM) ::Ii I(:r :hc \~ll1iaf)J'Udi perlOcJ endIng Decern-
tler}] )\:l,CwJey \ J-j(Jv>Jld Jar\l'i TaXpd)ClS ..\s~n
,'jY'-;l8 4:h D:s': 6S CJI A;l;:J 4:1', ]::'55 SO C,,: Rp:r::'d
YO:) ]~6]
CHAPTER II
Fnforcemenl
~ 91000, Penalties
(0) Any person who knO\\J:lgly Or "illtull) \Jolates any prollSlon of tfm title IS
guilty of a misdemei.HlOf
(b) In additIOn to other penalties pWVlljed by law, a fine of up to the greater of
ten thuusand dollars ($] 0,(00) or tbree tllTleS the amount tbe peLlon failed to
:21 Go.' c;
B~gll,,.,,[lg 1.1 19'12
'lab(j In,l;Calt ch"nges ur .aUJllon.1 ." :nJlcalC cmJS,:c-,.c.,
271
~ 91000
CO\ER'\\lEi\T lODE
rcport prc'perl) Uf unlJ\\ fully contnhurcd. expended, ~a\c or reccl\cd may be
Impo::c,cJ uf-'on (On\lctlon fur each \ wJatlO!1
(el Prosecution for \IOl3tlOn of thIs wle DiUS! be cmnrneIlccd \\'lthiIl four years
dfter [he dar:.:.: on \\ hleh the \ lclJ.tlon occurred
:~dJd S~iIlS ?({I() ~f1 10.2 ~""'3 I:\B I:::?__~ dice! 'q' hi} -: ~'):JC' a;:prc.\('d b:\ ',01':1, a' If1\' \"J'.trT~he; 7 2000,
genCld: cIcCI:()~ ;YIl'f' J~ eijr.:ul\C \;~'\r:;;hcr ii, ~()(II] OFCrdtl>t' J,1!II:dr:. :'UU!
l-orrncr St'clions:
j-Or.TH'r S l)1~~") S;;-III:df!U :hc I'rc<;C'ilt SCC,,'f], .,,"s aJded b\ ;nilIJI,\t ~~Ita,,~rc Jc"p:ed Jl~nc.:J 19'.0:, dmended
Sr;,rs l'i-'~ eh ,..: i, S J, ,,rTKnJ'Tlfll: dc:op!cd by \(1:0:1, I'r:T 20S S J() C:'fCL:!\C~C'd;'J)lhcr 6. ])1)6, upcrcl!l\.e
lC'[luJr\] 1':i9- ilnu rt!,cakd S:al~ 2()OO d] jC',~ ~; -:: -:'2 rlkctlle JI:~Y ',=aO(i, Jppro\cd t,y \iJIC'fS J' the
h()\e~!x: 7 2'-1(;1) gcncrdl l':CCllO:l (PICp 3:1) dfecI:\l: t'u\~mb('[ P 20CtO, cperdll"c ldn!]:IIY I, i()()]
Editor's .'\Olt" - Prup 68 (I9SR:, PUCp(1t:lng to ;;I":"]cnd Ci,,\ C ~ [j1(JOO hi m,1f:Jng ref('lencr tt) prup,'~ed 1)[0\/1
.,i,l:jS ref'ard:llg CJ;,]r:d:gn C0::tr:D'.,tI0!1", IAJ~ held In,lrer.;II\~ 11<; cnli;ct:, Ii: 711\{Jo'rtr\ Ii} Ln)lj CampI!,'!;/]
S,'}(''1dl~g v Fal' Poi:,':cni P'(!(/,('I'S Co"vn, < ',iOC; (I ')0cn '\ I C,jJ 3d 74,:
F:}I fi.1d,ngs 3n;~ dec:<J~aIIL'[j:;, ";'fl,itJle JdlC Jr,d J;JP;ILil'J ::iY u( Jll, snCla!:itity, dnd efectllln, see :'](' 2UGO
\'ole !tJ!,O'Alng GU\ C ~ 8201r)
\'OTE5 OF DFClSIO\'S
The CLJut or :\ppt:d! CTlCO J.~ h(lld;ng l'Il!orct:lhlc:
(en,,:n !H:)\':":(;'I1,'; uf FrOpU'lliiH: hii a CM;-ipJ]gn
Idurm InltIJ~I\(: tflJI Ihe L'il~ers pJ.,;eu :n :-':()\ern~er
:98i' by a sm,'lii"r ,'It::r:ndtiLe ma,''':I[V !han Prer:)S;
ilur. ! l'1oposll;cn 68 \..I a., In,)p~rJ[I\l' 11 11-" e:;I;~C!y
"Inee Ih~ 1<l1:::lt:'.fs '.lee C(lmpe:lnJ; both :n;liJ:i'.('\
"r,]el]l~eJ the PL'lltJ~Ji Rcfi~rrn.\ct cf 1')7-1. Pri!"J'1
1:("i1 ,] i1p"lltd :0 ",' (':lndld,1It:\ iur,IJte J,'lcl luc:J!
t:k'~il\e ,:'It:cc J:hJ f'Iol::bl:cG pL.tlll iuncLrg ;}Iclc-c
'.I(;'~' ''"'' hi ie PU:'piY;1lIUi1 6S 0[':; :l\ S:dle
Jc~'<;]I:'C c:II;dldiJ:C:' clnd plU\IJti: fer
["Jrllc fJnJI:-:g l'; c,ec:lu:-:s, i1nd 01'1'.(;1,,1 !1J"OI d,'gU
rner;>; ,kLi,!:, prcscIIled the plCopC"llitF!, JI d~lcr:;J
liLT ,Id~'.il()i\ .\Cr,<:ii,e\ IJ~rdYc:rS to LI[TIJi CdlnpJI~,']
Spe',lid'B \ F,,~r 1'"li PrdLt:,-f,\ Com (liJi)/)) SiC,: jJ
ij4, :C'c1 ClI Rp:< :R'. 7')9 P2d ! nll
f\:lljll-'~()r0<;11:()n 7:.'s (urnp3lfTl ntlJT1ung rd()!n:
';:e,I,Uj(' IUi c:ccrJon, 10 ">Ia:e drJJ IOCiI: OHllC\'; COl
~rl~Jllon IJrlll:S :hJ! iHe rned,urcu ('n J ibCdl q:;il
I:J,jS <..iC (UIlS:;tll:I(~naIIJ In'1rm The piTrC'Sill,_.1 1':11
lis :h:: J:TlUU[iI a cur:r:bU[('1 nlJy gIVe d:JjJr;g t:H.n !is.
~,. :.Cdf rJlhe, :.I:Jn iul:0,^lllg Itle kueu] model of
!I:n:llns the ,JI),uuni d c:in:r:butu! ,tHy gilt dUllng
C;iC!; ril'UI0n cy:!c The IntrJ(;JlIdIlLI!C (rdn,fer bJ:l
(irJr:s1c~, 01 junt], bel\\cerl conlrolled C('llY1mrttees uj
J s n I; Ie (.j n J I d J t c, d n J I '1 : \~ [ L J n d : ~i;: 1 C (] J Ii S f cr s (c~'
1,lnlh bc:v.een (JI':,:llLill.:\ ;11\(1 ,FI.: unCOl:,til'JI]::"ndl
IL1du t",t hr,,"\~-:-Jen.JI~,ci1t n]e r:'1l Dn Ir]:~d
(dnd,Jrl(C Iti1Tlolcr<; l);,erd:n J" dn e~pl>nd;tllre 11I11.1a
'l(l~1 d!ld is Sllt,lt'CI !o ~Ir:ll Sdut:ny 11 1A0ulJ r,3\'C
~'t'el' q'hc,d onl,l i! II \J.ne ji;~lro\J.jy IJllurcd to Scr\t
J cOllll'cllll:g Slrtlt IlltC'C\1 The bJn on 11:IU-C3iH,Ldatc
tr.]~,' rers (cuiJ hi! II;'. cecil ~l:"lal neJ un! y If Ihe SIJtc
:kl!I~)rL'tra:cd ~ ,ulfi(ier;;!y Ir!ipcrtdtlt InIUU,1 J,1G
C Ir.pic\:.:J ITlCJn, ~ liJ~tl Y J[ d ''^ rj 10 ('., Lid unnec:es,Jr)
:iI)rl,:gmcr,: cl 3.,'oc',,::unal frec:!ioIl)S Ihe: potenll,';
j,H ~('r;n'l()n ~le!1~lTitd (!om lilfgt :Jmpalgn Ci)nt~1
bulwn\ SU\:ce Fi-:lpL)Jct~ ILI'I l:nIO:1, Cl~ \ F.l:r
l-'1'I,t;CJI fJ[Jcrke~ C()r:J i91~,:, c.^\~ Cai) 955 1'2,:'
I"17, eCI" dCl .:0 L ld 2o:i 1)22, l~? S CI ]U'56
S 9] 000.5. Slatute of limitation
'0.10 ;:HJministfJtJVe action brought pursuant to ChJpler 3 (commencmg v.,'ith Sec-
tlon S3100) allegIng <l \loJal1011 of JI1Y of the pnJ\lSIOnS of thIS title shall be
commenced more than five years after the date on \\,h](.:h the Vlo];'illOn occurred
(a) The servIce of the probable cause heaflng nOllce, as requIred by' Section
83] 155, upon the person J1Jeged 10 have \'Jo]aled Ihls tl!le shall constllute the
commcnccment of the admlnlstratlVe action
(b) II Ihe person alleged 10 hase vlolaled IlllS 1IIIe engages In Ihe fraudulenl
concealment of hIS or her acts or IdcTllJ1)'. the f]\c~year penod shall he tollcd fur
the penod of the concealment For purposes of thIS subdl\ISIOn, "fraudulent
conce;:dment" means the person kno\\s of materia] facts related to his or her
duties under thIS tHle and kno\\Jflgly conceals them 10 performIng or omitting to
perfonn Ihose dulles. for the purpose of defrauding Ihe publiC of informallon 10
v. hlCh II IS enlilled under Ihls lllie
(c) If. upon helng ordered by a superior COllrt 10 produce any documents soughl
by a subpoena in any' JdmJnISlratlve proceedIng under Charter 3 (commencing
wllh Seello" X3100). Ihe persoo alleged 10 have vlolaled Ihis Iltle falls 10 produce
documents In response to the order by the date ordered to comply' therevv'ith, the
272
tJcg1l1nlngi'; ,991
<la/'o ,r,d',oie Chd"gc, c, JdJI:'::"~<; . . . IndJCJie c.fTl:.\,I(~n:,
:21 Gee CI
(jO\'El<\\lE\T CODE
fi\'c-) car penuel shall be tolled fc
f the m\J!lon to compel until th(
o '" ~~ ~ 1 \1:3 C)';S,
Added 51,jt" 1 yy, ch I Y ~ ." ... ,
S 91003. Injunctions
t\c
In I;'.M;:lC;;1 dOII:J,n l':occCdl[]gs.lnILaled 1
redc',clL'pmenl agcney In which Ine properl
rroS.,.corr.plalntd 10 uec:arc In\'dJIJ ;he :e';':1
~eCessl:Y ha,ed on Ihe agC;!;:\'5 allq.:ed ','10:,
the Polltlc?1 Rdclr:n .:..-=! 01 19:4 ,YRA,I :G(;\
shlO(JO e: scq) ihC'lC IAJ.> sub.<:tarH1J! nil
suppon Ihe Irldi ~O.;rl 's deltrTTIlnJllOn that dO'
.,.,as a resldcnt of I!:e [II\' during lhe rClldcn(
action, lhereby gr'in!, h.m slandlng :0 5l1t 1
ntend-" .,tondlllg 10 bring d pr:\;!!t C1vli d(
lr.jUnc:J\e Itlief lu ' [alny pelso~ rC"ldlnf
lun<;dIC',IOr. ' fCu\' Code, S 910Q.~, suhd r
'the PRA is IlherJlly COIl'lrc:ed [0 aC((,1TI
riJrpose5~GO\ Codc, 9 S1003) The tn
conducted l',vO hn:Jng\ and heJld tn:IITlO
Ihree IJ.1i'le",cs, 1~I:;!UdlT'g (he OIJ.Tit'T ;!nu ~;I"
The (JL'.nfl', te.,tlrTIuny could not be U:"COI
apptdl lirlleS" I I \\ dS ph: "Icdl ~-" Impl..,"1 t,1e ,
enlh lir.pruDJblt: Jnd SLJ~h Ir~h{,l~n! Impr
0:;;:;1:\ Jprt'Med Mureo\c, COL' C:)Cc
~un!"I'Il{'d :KJ \reCl1i( ti;Ile rtkrcnce lor 'rc I
~r')\:JI()n, and Jll~ :wt rCljl;lre une :noecd
j(lub:fil' v.hClhe:r the PRA C\cn ~eql.ilf::cJ ~Or1
tu be IC'i(knl<; of Ihe )1;n:;dl,licn I.'.nClc Ihe
nrtr'erlV \J.~~ ,o,';:led to d-:dlk;lg~ ,~ ~u\e
,jec~-Si(};l The PRA 0:] 11' fdce IS :ntt:r.ded (
S'.MltL1g net Ilmil It. a;;u . LinUl'.; :ht, (0:11.11
:hoSt IA ho Me JC\Cj"cL) otte,:tc.n by 1:1<::: up.:
an c:rdlnJnLC: Ind,l q~n'.luJj II~ \'dlldl:Y KI]ne
991004. Civil liability for viol;
Any person \\ho Intentlonal]y
requlremenls of Ihls lllle sholl
proseculor or by a person reSldln
than the amount or value not pn
."'dJl'd S!J:~ 2000 ch 102 976 (SA 1223'1, ~1
gcncr.]1 elt'Uillfj .:Prup 34). ,11ec'.!\'t' :'Jo\('~lil
Former Seclions:
!-tJlmcr ~ 9i004, SII!1I]d[ tu the pr~scr,1 s~etJ,
live JJr'IIJI\' 7, lij:S, JlTlendmc:l: JJ0plc:J I
JJnc;arv 1, '1')'):, JilJ fcpeald Sta:, 200C (I
0!o"t~bn 7, 2000. gcnerdl clection (rr()p__i
Editor's I\otcs--For h;,dlngs and dcjclr.1ll'
Ilun, ~ce Ihe 201J() 0<Ole liJllov.ll:g Gc' C ~
~,
Cio\' Cock S 91004 (dn)One VI JIJllng
Reform Act rcrorting reqUirements ;.Iily b~
civil action). IS no! broad enough ['J, C
CJmpaign milndgcrs since GO\ C()J~" ~,~
rose, a dUl) 10 jeport only on ekel"u
(andld,Hc>, Jnd (fe,,~LlreIS \lcC:;uln \ Bl
~1Jlketlng (I YY3 ,~th D;Sl) :6 Cal A;'p jlh
CJI Rp:r :d 49fi
:~1 Go' C
Jl ul i,- 1 I [1 c: ~ ~ d I
ENFORCEMENT
991001.5
l)r
.'.1' 1'l"dlnjUcl \'~ .1 rfc'J.h \)1- Ih<: .~n!c'~lc"11i BJr
-\"!.'~I.III'~11 ~ CoUe llf Frl~k'~luri;l1 Rc"fWlhlli,llly
v-hnc' th( dc-pul; dl~irkl .Jt:orn,"y p.Hlk-~rJled
()I;iy J' J \',1"<."'~ ,lnJ 11<11 J' jl! Jd-,rXJ".' ," Ir~c'
C:,l~c' I-'c','plr \ B.i1L\rd (193n1 1['4 CAJ:J i~~ Ib-i
CJI Rr1r 8]
o Ihe
'l()Unt
" ex-
eac 1-1
B
~ 91001. Enforcement agencies
(a) The Alwrney General lS responslble for enforcing Ihe crimlnal
proy lSlons of th,S tllle with respecl W stale agencles, lobbYists and
state elections The dlslricl attorney of any county In whlch a
vlolatlon occurs has concurrent powers and responsibllnies with the
Attorney General.
(b) The civil prosecutor is primarily responslble for enforcement of
the civil penalties and remedies of this title, The Clvll prosecutor lS the
commission with respect to the state or any state agency, except Itself
The Attorney General IS the cIVil prosecutor with respect to the
commlSSlon The d,strict attorneys are the civll prosecutors with
respect to any olher agency The civll prosecutor may bring any clvil
action under th,S litle whlCh could be brought by a voter or reSident
of the JUflsdlcllon Upon \Hltten authoflzatlon from a distrIct attor-
nev, the commISSion may bring any ciV'l1 action under thIS tIlle "hich
could be broughl by a voter or resldent of the JurisdictIon Under
such clfcumstances, SectIon 91007 shall r~ol apply to the commIssion
(c) Whether or nOI a v1Olatlon is lnadvertent, neglIgent or delIberate,
and the presence or absence of good f31th shall be conSidered In
applymg the remedlcs and sanctions of th,S tItle,
:..jd~c 5td\) lQii en 2.,0 ~ 4 rnt':li'::' July 7 19776,r.lcnccd Srdl_~ 19-:'Q ell -'57 S I
Former Section: forme~ S 910e'1, '>lm'i,11 lC1 [he rreSC'll section \\.15 Jddcci b> Inl'IJII\(,
1~IOSi.He adopted JUI,'.' 4, 19-:.t, Jnlc'nded by SUI'> \976 eh sq..t ~ I effectll.? At.;guSI 19;6,
en 1161 965. 3nd repe,lk~ by 51,)'" 19'7 en 230; J. effcC11\'c Jul~ 7, 197"7
,lInin
,1 ;3
del':, 1,
;~ <::
c
.'(
:C',dkiC'j
Amendments:
1979 Amendment: Added {he IJ\I :1\0 sa,ler.ce<, In subd \bl
Historical OeriY3tion: Former 99]00\ J" added b., 1[111:alll(' mCJ.SGre ;ldoptt:'d h::lc 4, 19"74,
Jmended b: SIJh 1976 en 594 S 1, eM 116: S 6 5
SOle I -Stats 1977 eh 230. efTc'cll\'c lull 7, 1977, pro\ldt's
SEe 5 The Leglsl;l!ure flnd" 3nd declJres lhJI Sections 1. 3, Jnd 4 aft: r:ecess:HY 10
correct ambigUitIes r:Jlsed by techn:cal f,JI\S In Ch.Jpler 1161 of the 1976 Sl.J1U~eS
The Leglsl3(Ure runner find.., and declares th31 Sections 1, :" and 4 are dc'(lJr.J11ve
of e,\ISllng law
,'iore 2 ~SIJ\~ 1979 Ch 357 rro\ldt'~
SEC 1 The Lt'gi~IJ!urt' flnds <lnd decl:Hes that the pro\ ISIGns of I hI'> :ll'l Cunnn Ihe
purposes of the Polll]cal Reform .A,ci of 197.+ 1\lIh]n the rne(-lillilg or \',]hd:\I"lOn
(8) of Section 81012 of Ihe Go\crnl11ellt Code
SEC 1 The Jmendmenls etleut'd b\ lhl\ Jcl sh:lIl not be contrut'd In derme Jny
person or publiC Jgency of Jill' ~UbS!Jr.lIJ! rlghl \vhicn \\ould r.J.\t' e\ISlcd or
here-after eXists h:ld such Jmend:nents not been effected
IJ~ndJflt
I ,CJnl"
, \12tlng
rruhlbil'
far Jill'
',' or bi~
8J :IJ ~d
9 !IS1,
i(0r;ner
)0), ICS!I-
_'rwf, by
h~ grJnd
'~'d In Ihe
J lhc J(.
C)r~Judl'
S 91001.5. Enforcement by city attorney
In any case in which a district attorney could act as (he civil or
349
991001.5
POLITICAL REFORYl
criminal prosecutor under the provisions of this title, the elected city
attorney of any charter CIty may act as the civil or criminal prose-
cutor with respect to any violations of this tItle OCcurrIng within the
CIty
Added Srars ]976 ch 594 S 2. .AugL.;s: '- i9i6
Collateral References:
A !lorn e) CienerJl's Opinions
Go\' C 9910015 does nOI authOrize ell)' attorney of charler ell}" to prosecu(~
Violations of Political Reform ACl when (Ify charler has been amended to remove
Clly ar:orne:y's aurhorlt) [0 prosecute misdemeanor VIolatIons of slate law, City
Attorney who has no! exercised hIS authority to pro:-ecure member of Clty counci!
for Violations of P[pclJtlcaJ Reform ,.\cl may lav.iuil: receive mformallon from
member regarding hiS or her financial Interests on c~nfidenlla] baSIS under
a:torney.cllent prl\lle.?c and ad'.i5c member \Ane!ne: OffiCIZl] action member f:as
lJken or mJ)- !ake \'-~Ji.Jtd \10!3[1' POII[iCal Rerv~m Act bu[ 'M)uld lhen be
dJ<,qual:fled from pro<,e:utlng any such Ilola[IOI1S (19SS)"71 Ops A~[y Gen 255
S 91002. Disqualification from serving in elective office or as lobbyist
No person conVIcted of a misdemeanor under thIS title shall be a
candidate for any elective office or act as a lobbYIst for a period of
four years following the date of the conviction unless the court at thc
time of sentencIng speCifically determInes that this provision shall not
be applicable A plea of nolo contendere shall be deemed a conviction
for purposes of this sectIon Any person violating thIS section IS guIlty
of a felony
Added by Inlllatlve meas~~e adop!ed ]...;nc 4, 19~~, opc~al:\C' January 7, 19'75
CoJJaleral References'
WilkIn Summary (9th I'd) COn':,!ltutlo,lal La\\ ~ 203
Cal Jur 3d Inltlall\e and Ref~rendu;n S 66, Legls]alur~ ~ 20, PubliC Officers and
Employees 9 175
Law Rnie..... Articles
Are lawyers lobbyists under Call~ornla political reform aCI of 1974 50 LA Bar B
49
r-;OTES OF DECISIONS
CD' Code. ~ 91002, lne pro\lsiDn of Ih-: f'ollllcal
Rrform Ac[ of 197-1 (GO\' Cock S 8iC:(l) r: seq)
\1 nicn proYldes [hJ[ no on-: COrl\'lced of a .'}1ISCO;'.
mranor under [ho' Pol:llcal Reform Act of 19i-l
shall be a canGldJle for any eie'cllye office for a
period of four year\ follov.ing the dal~ of the
conYlclion unless Ihe court 31 the lime of sentenc-
ing specifically dL"termines th.11 (his prolii'lon shall
not be applicable, is con,[itu[lonal. SInce the stJte
has a compdling interest in protecling lhe publl>":
from person, ....ho nJve been convicled of mlsde.
meanor v:oIJtloJl~ of Ih<: Potlll~'al Reform Act and
dell:rring Olners from vlola[lng [he .'let which
Jus:ifi~s [h~ four lrar disquallflcaliol1 Thus, in J
prosecu[lon lor [\\0 mlsdemeJIlOr counlS of [(':T1-
mingling ca:-T'.p,1lgn cOJl[ribullons, in yiolallon of
former GOIi Cede, 99 84JOO, subd, (cl and 91CXXl.
the trial coun v. hicn, afler defendallt was found
guillY, denied proballon and sentenced defendanl
10 pay 3 fine of a 10lal of SI,250 on bOlh counts,
did not abuse Its discretion In specifically sta[lng
that Ihe prOVISion in GoY. Code, 991002, prohibit.
ing defendanl from being a candidale for any
publiC offiL'e for four years from the' date of hiS
conViCtion ""'JS nOI waned People \I Ballard
(1980) 104 CAJd 757, 164 Cal Rp[r 81
350
n CODE
m<.JY be
lur years
XI :000
-4,arl1enucd
). l)perJllVt
()(cr.'> at the
OUJ
Gseu prm!-
CampiJlgn
e the 20(}Q
Ig each iis-
model of
IVC dunng
amfer h;m
Iml((ccsO/
In,ich (pi
l,tllulIOI1,J!
on InrTd-
He 11111](;1-
(Juid h;J\e
d tel sene
cdndlliJte
the st;;le
ereS! and
neccs,alY
POIl'f1'.ul
? n c()~-;tn-
Ie \' Fair
9S5 F2d
3056
h Sec-
1all be
curred.
;(:Ctl0/1
He the
dulent
led for
dulent
or her
109 10
Ion to
:oughl
'nclOg
oduce
h. the
GOVERN\lE'\T CODE
* 91004
five-year penod shall be tolled fur the perJOd of the delav from the date of fdlllg
of the motion to compel until the date the documents arc produced,
Added Sta!, ] 9l.ji ;:h 179 ~ 1 (AB \):;S)
* 91003_ Injunctions
;'\OTES OF DEClSIOi\S
1[1 emJ:lcn~ dormlln prl'cccdll1g~ initiated by a cry
redevelopment dgency. In whIch the property owner
cross-complaIned to declare invalid (he rc,o]u[lon oj
ncce~sJty ba~et.l on the agency's aJleged vlolatlOn\ of
the Political Rdorrn Act of 1974 lPRA) fGU\' Code,
9 81000 et ~('q 1, lhele was substantial nldence to
suPPOrt the Irla: court's delermmalJOI1 Ihal the owner
v.as a reSldenl of Ihe elly dUrtng the penden;::y of the
action, thereby giving him standing to sue The PR/\
extends standing In hrlng a prl\ ,He c:J\Ji action f()[
InJuncll\c relll'! to [dJny person reSiding In the
jUnSdlCllOn' IGoV Code, ~ 9J003, subd (ali, and
Ihe PRA IS IlberJlly construed 10 accomp!:sh liS
purposes (GC)\ Code, S 81003) The tml coun
conducted :1'1(1 hearings and heard lestimuny from
three \'\':tnesses, Including the owner and h~s ]andlotJ
The owner's IcstllT!uny could not be Jls:..:m.:n:ed on
Jppeal unless I: \Aas physlul]y Irnpo"slble or Inher-
ent]y improbJhie and such Inherer,~ Jmpruhabillt)
p:a:nly :lppeJreJ Moreol-er. GOI Code. ~ 9]()(J~.
contained nIl Sp<:CIDC tlrne reference tur the residency
prO\'I~lon, Jnd did 110( require one. lnrleed. j( \\as
douhtfu] wlletlln lhe PRA ncn reqUired cOfldcmnees
to be rC'ldents oj the JUrisdletion ',>,here Ihe aftcLled
propaty \\',1S k,cated to challenge a governmental
rleclslon The PRA on Its face i<., Intended 10 nll:nJ
sl:lndll1g, nUl Imlil ii, elnU under the COIllITJun ]aw
those who are adver~ely affected by the Oper;JtJ("Hl uf
an ordlllJllCe may questIOn liS vdlJJily Kunec ~ Brea
Rt'de\eiopment Agency (lliSJ7. 4th DiSt} 55 Cai App
4th 51 I, 64 ell Rplr 2d ]4J
In an actIOn b\' J City seeking In.illnctlle and other
re]ld dgal1lst a rnunl':lfJa] ""dter ulitnct, a member of
lhe district's bUdnl of directors, and a prl\ate I~dter
company, Ihe city alil'ged Violations of Ihe PO]ltlcal
Reform Act, ,peClncally GO\ C 9: 87] 00, and (iov C
S J090, I-\hicb prohlhlts offiCials' being finanCially
l:l:ercsled "Ill any contrau" made by any board of
~...hld\ they are members /-\ member ot the dlslrict's
bOdrd WJS also owner, stockholder. and sa!arled pre,I'
den! of defendant private water company whICh was
(l purveyor oj reclalfTlcd I"ller sold by the distnct for
re.,,-i1e In lhe (aUSt 01 action under the PollllCal
Reform ,....ct, the un!y retlej plaintiff reqL:esterl \AilS
InllHlC{II'e, pursuJnt to Gm' C 99]001 j\'owhere In
the p]eadlllgs did p~Jlntitf request declMatory lelld
concerning v.hethu the dlleClor's parllup:ltlOrJ III
\'\'Jter rale or standby J\sessmenl declswns would
Violate the PolitICal Reform Act The tria] coun did
!lot mJndeslly abu.'.,e II'., discrellon 111 ,;:ollc]udlng that
p]alntlff did not brar Its burJrn of PW\l!lg 111 a clear,
nonremute, nonspeclllJtlw~ manner a need ior an
InJunctiol1 against the dln"ctur's future parllClpatJOn III
any standby assessment or water raIl' declsiC'ns ClIy
of Vernon ~ CCnlral 8asm MUll Waler DI\l " I li99,
2nd Dls(j 69 Ca] App 4th 5US, 81 Cd Rptr 2d b50,
517
Ii 9IO04. Civil liahility for violating reporting requirements
Any person who intcntioll81ly or negligently violates any of the reporting
requirements of thiS title shall be liable In a civil aetJOn brought by the clv1l
prosecutor or by a person reSiding \\:,ithin the Jurisdiction for an amount ~ot more
than the amount or value not properly reported.
Added Stals 2000 eh 102 ~ 76 (S8 ] 223), effeCII\'e Juiy 7, 2000, applovcd bv vOlers Jt the J"iovt'mber 7, 2(JOO,
genera] election (Prop ]4), dfectl\'e 1\ol,cmber K, 2000, operJtl\c January], 200]
Former Sections:
Former S 9]004, SJlnj!ar to the present seetlon, was added by inItiative measurc adopted June 4, 1974. opera-
tjl'e January 7, ]975, amendment adopted by \utns, Prc\p 20K S 31, dfectll-e ~ove!llber 6, 1996, operative
hnuary 1. 199i, and rcpealed Slats 2000 ch 102 ~~ 77,78. effectlvT July 7, 2000, approved by vuters iJ.t the
November 7. 2000, general eleUlOn (Prop 34), effeClI\e November 8, 2000, operatl\e January 1. 2001
Editor's Notes-Fur fincllflgs and declarJtwns, operative dilte and appl:cabl]J(y of JlI, severahi]Jly, and elec-
tion, <,ce the 2000 NOle folio\'\'lllg Go~ C S 820]6
'01'ES OF DECISIONS
I
,
I
I
I
I
I
Gov Code, ~ 91004 (,lf1yone violalJng Political
Reform ,....ct reporting requlremcnts may bc liable Irl
CI\il actJOn\ 15 not broad enough to cncompass
camp,-JJgn rnanag::rs, SltlCe Gov Code, S 84104, Jln-
poses a duty, to report only on elected offiCla]s.
candidates, and tleasurcrs. :-"'1cCauley \ BFC DllCct
;vlJrkellng (J991 4th Dlst.) 16 (J] App 4th 12(j2, 2()
Cal Rptr 2d 498
To hold under the Political Rdorm Act of 1974
that separJte reporting v1Q1JtlUns could be pm of one
hluITed "ongoing du:y" to file reports Ale~ 111 th~ tace
of Go\' C!i 91()07, which rCijuires lhe pnvate htlgant
to first gJ\.e lhe CIIJI prosecutor a nght of hrst rcfu~,lI
ui any' reportlllg \ loldlion If partles could bring ac-
tions under GO\ C 9 91004 b:Jsed on Ju~t one homog-
enll.cd general ground, Ihe right of first refusal coulJ
121 Gcv C]
Bq:lnnmgw:':I92,
ilahCJ IndICale changes or additIOns' . . IndlLJle ()ml;;SlOns
273
GO\ ER\ \[E\T CODE
f ;;.,.~ JI,,"" u' rll' 1~~ITl" " IJIJ c!u( in
!:'iC'-l ;,,:J Ji'},15 F'~Jr P '[)(hc', r;t i~,i.' r~prn;rI&
','~~l:cn[ l~r :; ~-:.:':Jil (,'m,:", :'c', '-J~n;)r I:'.
c' I"'J~ JlJ"Cc:icy ~rl'u~, "',~n J:c' ,',':,'OJ,:I\~J\ J"
I<;,d IrJ: ~r.1:U, ~'. '''I~cll' 01 ::)LJ,"i ~:~~, Inn \kCJu_
fL)"..,r.j ;J:', "TJ\pJ\t'-' ._\_"r, ,i99~, -11,'1 DI~[J
\fP J:~ I ~:: - ~() CJI .l\pir '" 9:)!) : 2(',5
~'on[fjblltion, g1f~ (1r e\rc~ndl[urc in
or 8610~ IS IIJbie In J CI\)J Jction
Il residing within [he junsdlCI!On for
OO! ?f th:-ec tnllc~ the JrTiOunl of the
;, hlclJn'er amount :s erCJtC'f
Ji specilled in Sectiun ~87100, except
i1UfT't,C benefit as J resuj~ of J \IOL]-
',l pro\lsJon of J COnAiC( o~- Interest
t'1C' CI\ I] proseCU1Df Of r\ ~: person
lip 10 three [Imes the \2~l:e 0f lhe
- ~ ~ '
"'" " ! c;'J- C h, -.;.:':' ~, ~ IS E: j .,'!' <' h~c"
',,'~r,," \ ""rJ:U' '<,~ C';""r C
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"".If 0/..'"
C:I' _'0
s~
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5~,I,'Yi S53~;{I' oJr Ci'..p:C'f;;
,,' ~b:C....;
. Y(!~:;--i r()r S<,C,
St.'i)!"
S--'_ (:~ S,~::O::"
, ; iT '" ,'1 J ~ . :' r Q ill
,'J dlli::HS IS_ Ut"
sc:r, 1;;1,;:,,: J~r:t'::;f, ib)
J:;:j ((i Jc:JI,~, Jmounl
~l J':U '\'O'CIIO" S:::'CO in ,,,,j Ibl
!U~C) Jnc I 990 \'illr~ fo ;0\\ In, Cc' C ~ S-I:' i I
IO\S
l'O' '. Jlu~ nOI rcpOrIed GO\ C ~ 91005. by
'I alivll's J IIJbill[}' for up 10 !hr~~ [imt"$ Ihe
of lh", Llr:!Jwful conrnbul:un 111 ,<'~Ji:l more
l'Ll> C:::,<'5, such as upl;::\,ful cO:l:r;Qul:ons bv
" I: ':.c)uld h~ p;:lIcnl::, Jb,I.:~..! II) r~Jd
) Jild 3-1':00 lo~e:~n [0 imi-lo,~ C'UI;c:>, on
"\ ~r~",I;J' tD';1 slrglc n~:\,llit'nl \i",I,II,,~'n >0 J,
, d pn', J:e ' bounlY hun[er" to ~,': nch off of
,I,ll,on In SIJlutor;.' lcnns, i~:h- J r'O'Jd:n!2 of
Il::r~" d~ dd'ined in ~ 8~013 \~ol.!:d :onrrJ\~ene
',n IlTlpllL'Jllons of rhe frJm~\~ork bid out in
II..! J.nG \)]005 For purpose, 01 the' reponislu
I~'c:>nl of ~ S..!~OO, "comm::[<,es' ,"JJ1:l01 :n~
"ue Jd\oCJcy groups who are retJOJcli\eiY as-
Ir.JI S(J:US by v:nue of coun decl:iwn ,\leCall-
'1,Jrd 1:1[\ IS Ta.xpJyers AS$:l (1998_ -Ilh DISlj
ip ":Ih 1255, 80 CJJ Rptr :d 900 1]65
111~",()k 01111)\1011,
(2~ Go~ Ci
GO\ER.\;\IE"iT CODE
~ 9111115.5
5l GGESTED fOR.'IS
CompL:lint A~ainst Puhlic Omcial- To RrcoH'r Benefits Obf:1inrd frum Violation of ConAill
of Interest Pro\isions
iTI.',.'/! u,r COilr,' iill,! C U,(t'/
PI.;In;rr'f is ;J re,":":;1 uJ the C:IY C:
Coun:} 0:
S:j[c 01 CJ.llfo<n:J
D.:I-cI1J;.:.r.[:" _ /+uif' U,({i(i.j/ ;:'LOI:I!~i'nl,,;' POI:',UI'!
On _ ii/crr,! deknJ;Jn[, 3ctl);:? !!'; _ ih" C,' her: ulflcl:I: (JpCI:} :1<;
_ !'r'I:Ci/Y riI'CISi()1] 01 go',er-nlnt'!!!(!,.' {le,':,)':}
\r:I':,:;['.JiL'Li:;'
--l DdenJJrl: hJd a hnJnclJI Interest In [r.e abu\t;' descnbed _ rdeCI~iOn or go\cmr.--:e:;l.l!
[lonJ_ lmde:- [~Je prcnls:ons of the GO\c'm:nent COdl' ot' the Sr:tle at' C:lillomu, In IhJI_
5 PIJin[:ff IS Informed and believes JnJ on thdllnlonTlJtlon Jnd belief ili~ei'es !h:1! as J dlre;':[ rc:q:'1
of Ihe described [deCISion 01 go\enlmenlJI Jel:on), dekndJ;-;[ hJS rt':~llzed :lr. eCOilUil1k
b~>r:c f:1 0: S
{. Or: /,/,:rc'/ pl,l:nt:i'l ~~eJ II, ,t''i the el\ I! ;:;rcse:~I[U' :\ "" r,I~'-':l
C(Jrr,mCl,t':1 .; (opy or IIl::l 'cqunt :' ~I::::;,.:-"c,j n':lr~ec E\) Jr.:i
e ~I c t'
reqliCq l~J~ [hi, ::t:'[II,'i' t:-'l'
.end 1!l,;e;,rporJ[c'J ~\ '~'Ic'i
7 0:1 /dc,'.'e/, pb:n[lt1 ",JS :n((),l~",~j by I~':c' c:\~! pro~c':-L2lC"r :I--,:~r if-:<:' :C'LJiln[c~ :lClior, Uc'):1 i':'~'J
,lbc\C' \'.C!J:J ,~JI be: :'e''llfl'cnced or (:\ 'It' L!It' 1.':,11 DC;'
S P,JrSiL,nl If) the pru\:s,ons o~ Sl'(I:::;'~ l)IC,05 ~:,jbj,'.I_"IC)[1 (l' Ollhc CiU\C;rlrnl'n[ COGe O[ [h:
SIJ[e 0) C,illUfrli;j dete:icJ<i; IS II:ie-,k Ie pl,Wl:l:l !,,Jr up :0 l~cL':' :::TlCS [ht' \:JI,:e 01 the l:'er~c":I[
dcr~\C'J fro:~l __ i!~'s {lr her,l p~n!CT2l:"n:,,:1 dec:s:cr::n \,1',10.:1 ,j~'-(','1jjr,1 he: a tlr:clnL::.:llr1[O-
c:~[. I~ \I\)i.::::,:)n oj [~'-' ;xo',;:'lcns of i~" GU"c",'1llllci'd CcJc ,,( [f-rC' S!J[~ c::- C:!I!U;i'iJ
\\ huetu~t' p:.ln['lr rcqul's[;; )_d:;l::c["1i J~:::: <cjt:f~dJI~[ f~\r
D. rl1Jc:e;; ::l [~.:' ::n:c'unl o' S
"_ / I~,I "i'i'" ':f:/r, ,It', {u'
Cn'. C i ();i)C'/:
::,r,;:,'I{'"
"(1,.'0'
pel,-',,:i, ":; r'i {:r','-'O\:i
'i'"C)'/;"){1
Co.,;::) 0; lUI: Jnc~
.1 SllCh other J~lC~ rCJr:::e: r;"I;c'~ JS [he' (OJr[ :Tl;iy ceCin proper
DJlCd
is/g,!(,,,,- I'/;' /
/~'('nJ7({iUcn/
S 91005.5. Violations for which no specific civil penalty is provided; Civil
actions
Any person who viobles ony proviSIOn of thiS Iltle. except Sections 84305.
84307. Qnd 89001. for which no speCific civil pena]ly is provided, shn]l be liable
In a CIvil 3ction brought by the commiSSIon or the district ;ltlOrne) pursli3nl to
subdivision (1:1) of Section 91001. or the elected city attorney pursu;:mt 10 See-
lion 9100]5. for an amounl up III five thousand dol]ers (85.000) per \Icolal:on
~o CIVIl 3ction ;:,d!eging J vlOlation of thIS title nl3Y be filed Jg3inst J person
pursuJnt to this section if the crimin~ll prosecutor is mcllnt3ining 3 crimrnJi 3(-
tion against tbal person pursuant to Section 91000.
The provisions of this section shall be applicable on1) as to violatIOns oecumng
after the effectlYe date of this see lion.
,.o..dd<'d SIJIS :2000 ch IO~ ~ 791581213), eff<,cti\<, Jt.;ly 7, ':000, Jppron:J by "olns J[ th<, .'0\emb<,r 7, ~i)()i)
gc:>nerJI ekCtl0n (Prop 3~). <,fft"ctl\<' November S ~OOO. op<,rJtl'd bn:JJry I 2001
Former Sections:
Former 9910055. s:m:lJr to Ih<, pre~enl seCllOn_ \.I,JS ;ldjed S[J[S 1982 en 727 ~ 2. :Jm~ndm<,n[ :JJL-\PI<,J b,lI
vOlas. Prop 20~ ~ 32, e~<:'CII'~ :-"0\ <'mber 6.1996. operJtive bnlJ.lf)' I. 1997_ J:lJ rep~JI<,d SIJI~ :000 ~.!\ 11)2
12' Go,..q
B(gll1l1l:1g on 199~
i/alio 1f1docJle ch:lJl~(' or Jdd'lions ... ,nd,(JI( om"'Ic'n,
253