IA RES 2000-010RESOLUTION NO. IA 2000 -10
A RESOLUTION OF THE RANCHO PALOS VERDES
IMPROVEMENT AUTHORITY ADOPTING A
CONFLICT OF INTEREST CODE CONTAINING
DESIGNATED POSITIONS AND DISCLOSURE
CATEGORIES
THE IMPROVEMENT AUTHORITY OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, RESOLVE AND ORDER AS FOLLOWS:
Section 1. The Political Reform Act, Government Code Section 81000, et
seg., requires the Improvement Authority of the City of Rancho Palos Verdes
( "Authority ") to adopt a conflict of interest code for each department of the Authority.
Section 2. The Fair Political Practices Commission has adopted a Model
Conflict of Interest Code (the "Model Code "). The Model Code, codified at 2 California
Code of Regulations Section 18730, can be incorporated by reference by the Authority
as its conflict of interest code. That Model Code will be amended by the Fair Political
Practices Commission from time to time to conform to amendments to the Political
Reform Act.
Section 3. The Model Code, attached hereto as Exhibit "A" and any
amendments to it duly adopted by the Fair Political Practices Commission, and
Appendix A which sets forth the designated positions and the disclosure categories for
each position of the Authority are hereby incorporated by reference and shall constitute
the Conflict of Interest Code for the Improvement Authority of the City of Rancho Palos
Verdes.
Section 4. Persons holding designated positions listed in Appendix A shall
file Statements of Economic Interest pursuant to Section 5 of the Conflict of Interest
Code with the information required for the disclosure category assigned to them.
Section 5. The Authority hereby directs the Secretary of the Authority and
Authority Counsel to coordinate the preparation of a revised Conflict of Interest Code in
succeeding even - numbered years in accordance with the requirements of Government
Code Sections 87306 and 87306.5. The revised Code should reflect any changes in
department or employee designations. If no revisions to the Code are required, the
Secretary of the Authority shall submit a report no later than October 1St of the same
year, stating that amendments to the Code are not required.
Section 6. The Secretary of the Authority shall certify to the passage and
adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 3rd day of October, 2000.
__\ v - "t�\ J& 'k ^%, A�
Chairma
626891
- 1 -
EST
,
cretary of the Authority
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF RANCHO PALOS VERDES
I, JO PURCELL, Secretary to the Rancho Palos Verdes Improvement
Authority hereby certify that the above Resolution No. IA 2000 -10 was duly and
regularly passed and adopted by the said City Council at a re ular meeting thereof held
on October 3, 2000. /1 /� 7
626891
-2-
i
Secretary of the Authors
1
EXHIBIT A
Conflict of Interest Code
Section 1. Definitions. The definitions contained in the Political Reform Act of
1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs.
Sections 181009 et seq.), and any amendments to the Act or regulations, are
incorporated by reference into this Conflict of Interest Code.
Section 2. Designated Employees. The persons holding positions listed in the
Appendix are designated employees. It has been determined that these persons make
or participate in the making of decisions which may foreseeably have a material effect
on financial interests.
Section 3. Disclosure Categories. This code does not establish any
disclosure obligation for those designated employees who are also specified in
Government Code Section 87200 if they are designated in this code in that same
capacity or if the geographical jurisdiction of this agency is the same as or is wholly
included within the jurisdiction in which those persons must report their financial
interests pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government
Code Sections 87200, et seq.
In addition, this code does not establish any disclosure obligation for any
designated employees who are designated in a Conflict of Interest Code for another
agency, if all of the following apply:
A. The geographical jurisdiction of this agency is the same as or is
wholly included within the jurisdiction of the other agency;
B. The disclosure assigned in the code of the other agency is the
same as that required under Article 2 of Chapter 7 of the Political Reform Act,
Government Code Section 87200; and
C. The filing officer is the same for both agencies.'' -�
Such persons are covered by this code for disqualification purposes only. With
respect to all other designated employees, the disclosure categories set forth in the
Appendix specify which kinds of financial interests are reportable. Such a designated
employee shall disclose in his or her statement of economic interests those financial
interests he or she has which are of the kind described in the disclosure categories to
which he or she is assigned in the Appendix. It has been determined that the financial
I/ Designated employees who are required to file statements of economic interests under any other
agency's conflict of interest code, or under Article 2 for a different jurisdiction, may expand their
statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this
expanded statement with both entities in lieu of filing separate and distinct statements, provided that each
copy of such expanded statement filed in place of an original is signed and verified by the designated
employee as if it were an original. See Government Code Section 81004.
626891
-3-
interests set forth in a designated employee's disclosure categories are the kinds of
financial interests which he or she foreseeably can affect materially through the conduct
of his or her office.
Section 4. Statements of Economic Interests: Place of Filing. The code
reviewing body shall instruct all designated employees within its code to file statements
of economic interests with the agency or with the code reviewing body, as provided by
the code reviewing body in the agency's Conflict of Interest Code.2/
Section 5. Statements of Economic Interests: Time of Filing.
A. Initial Statements. All designated employees employed by the
agency on the effective date of this code, as originally adopted, promulgated and
approved by the code reviewing body, shall file statements within 30 days after
the effective date of this code. Thereafter, each person already in a position
when it is designated by an amendment to this code shall file an initial statement
within 30 days after the effective date of the amendment.
B. Assuming Office Statements. All persons assuming designated
positions after the effective date of this code shall file statements within 30 days
after assuming the designated positions, or if subject to State Senate
confirmation, 30 days after being nominated or appointed.
C. Annual Statements. All designated employees shall file statements
no later than April 1.
D. Leaving Office Statements. All persons who leave designated
positions shall file statements within 30 days after leaving office.
Section 5.5. Statements for Persons Who Resign Prior to Assuming Office.
Any person who resigns within 12 months of initial appointment, or within 30 days of the
date of notice provided by the filing officer to file an assuming office statement, is not
deemed to have assumed office or left office, provided he or she did not make or
participate in the making of, or use his or her position to influence any decision and did
not receive or become entitled to receive any form of payment as a result of his or her
appointment. Such persons shall not file either an assuming or leaving office statement.
A. Any person who resigns a position within 30 days of the date of a
notice from the filing officer shall do both of the following:
1. File a written resignation with the appointing power; and
2. File a written statement with the filing officer declaring under
penalty of perjury that during the period between appointment and
resignation he or she did not make, participate in the making, or use the
2/ See Government Code Section 81010 and 2 Cal. Code of Regs. Section 18115 for the duties of filing
officers and persons in agencies who make and retain copies of statements and forward the originals to
the filing officer.
626891
-4-
position to influence any decision of the agency or receive, or become
entitled to receive, any form of payment by virtue of being appointed to the
position.
Section 6. Contents of and Period Covered by Statements of Economic
Interests.
A. Contents of Initial Statements. Initial statements shall disclose any
reportable investments, interests in real property and business positions held on
the effective date of the code and income received during the 12 months prior to
the effective date of the code.
B. Contents of Assuming Office Statements. Assuming office
statements shall disclose any reportable investments, interests in real property
and business positions held on the date of assuming office or, if subject to State
Senate confirmation or appointment, on the date of nomination, and income
received during the 12 months prior to the date of assuming office or the date of
being appointed or nominated, respectively.
C. Contents of Annual Statements. Annual statements shall disclose
any reportable investments, interests in real property, income and business
positions held or received during the previous calendar year provided, however,
that the period covered by an employee's first annual statement shall begin on
the effective date of the code or the date of assuming office whichever is later.
D. Contents of Leaving Office Statements. Leaving office statements
shall disclose reportable investments, interests in real property, income and
business positions held or received during the period between the closing date of
the last statement filed and the date of leaving office.
Section 7. Manner of Reporting. Statements of economic interests shall be
made on forms prescribed by the Fair Political Practices Commission and supplied by
the agency, and shall contain the following information:
A. Investment and Real Property Disclosure. When an investment or
an interest in real property2i is required to be reported,41 the statement shall
contain the following:
1. A statement of the nature of the investment or interest:
3/ For the purpose of disclosure only (not disqualification), an interest in real property does not include
the principal residence of the filer.
4/ Investments and interests in real property which have a fair market value of less than $1,000 are not
investments and interests in real property within the meaning of the Political Reform Act. However,
investments or interests in real property of an individual include those held by the individual's spouse and
dependent children as well as a pro rata share of any investment or interest in real property of any
business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a
direct, indirect or beneficial interest of 10 percent or greater.
626891
-5-
2. The name of the business entity in which each investment is
held, and a general description of the business activity in which the
business entity is engaged;
3. The address or other precise location of the real property;
4. A statement whether the fair market value of the investment ,
or interest in real property exceeds one thousand dollars ($1,000),
exceeds ten thousand dollars ($10,000), or exceeds one hundred
thousand dollars ($100,000).
B. Personal Income Disclosure. When personal income is required to
be reported,51 the statement shall contain:
1. The name and address of each source of income
aggregating two hundred fifty dollars ($250) or more in value, or fifty
dollars ($50) or more in value if the income was a gift, and a general
description of the business activity, if any, of each source.
2. A statement whether the aggregate value of income from
each source, or in the case of a loan, the highest amount owed to each
source, was one thousand dollars ($1,000) or less, greater than one
thousand dollars ($1,000), or greater than ten thousand dollars ($10,000);
3. A description of the consideration, if any, for which the
income was received;
4. In the case of a gift, the name, address and business activity
of the donor and any intermediary through which the gift was made; a
description of the gift; the amount or value of the gift; and the date on
which the gift was received;
5. In the case of a loan, the annual interest rate and the
security, if any, given for the loan and the term of the loan.
C. Business Entity Income Disclosure. When income of a business
entity, including income of a sole proprietorship, is required to be reported,s' the
statement shall contain:
51 A designated employee's income includes his or her community property interest in the income of his
or her spouse, but does not include salary or reimbursement for expenses received from a state, local or
federal government agency.
6/ Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the
filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure
626891
1. The name, address, and a general description of the
business activity of the business entity;
2. The name of every person from whom the business entity
received payments if the filer's pro rata share of gross receipts from such
person was equal to or greater than ten thousand dollars ($10,000).
D. Business Position Disclosure. When business positions are
required to be reported, a designated employee shall list the name and address
of each business entity in which he or she is a director, officer, partner, trustee,
employee, or in which he or she holds any position of management, a description
of the business activity in which the business entity is engaged, and the
designated employee's position with the business entity.
E. Acquisition or Disposal During Reporting Period. In the case of an
annual or leaving office statement, if an investment or an interest in real property
was partially or wholly acquired or disposed of during the period covered by the
statement, the statement shall contain the date of acquisition or disposal.
Section 8. Prohibition on Receipt of Honoraria.
A. No member of a state board or commission, and no designated
employee of a state of local government agency, shall accept any honorarium
from any source, if the member or employee would be required to report the
receipt of income or gifts from that source on his or her statement of economic
interests. This Section shall not apply to any part-time member of the governing
board of any public institution of higher education, unless the member is also an
elected official.
Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to
the prohibitions in this Section.
This Section shall not limit or prohibit payments, advances, or reimbursements
for travel and related lodging and subsistence authorized by Government Code
Section 89506.
Section 8.1. Prohibition on Receipt of Gifts in Excess of $300.
A. No member of a state board or commission, and no designated
employee of a state or local government agency, shall accept gifts with a total
value of more than $300 in a calendar year from any single source, if the
of persons who are clients or customers of a business entity is required only if the clients or customers are
within one of the disclosure categories of the filer.
626891
- '7 -
626891
member or employee would be required to report the receipt of income or gifts
from that source on his or her statement of economic interests. This Section
shall not apply to any part -time member of the governing board of any public
institution of higher education, unless the member is also an elected official.
Subdivisions (e), (f), and (g) of Government Code Section 89503 shall
apply to the prohibitions in this Section.
Section 8.2. Loans to Public Officials.
A. No elected officer of a state or local government agency shall, from
the date of his or her election to office through the date that he or she vacates
office, receive a personal loan from any officer, employee, member, or consultant
of the state or local government agency in which the elected officer holds office
or over which the elected officer's agency has direction and control.
B. No public official who is exempt from the state civil service system
pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the
Constitution shall, while he or she holds office, receive a personal loan from any
officer, employee, member, or consultant of the state or local government agency
in which the public official holds office or over which the public official's agency
has direction and control. This subdivision shall not apply to loans made to a
public official whose duties are solely secretarial, clerical, or manual.
C. No elected officer of a state or local government agency shall, from
the date of his or her election to office through the date that he or she vacates
office, receive a personal loan from any person who has a contract with the state
or local government agency to which that elected officer has been elected or over
which that elected officer's agency has direction and control. This subdivision
shall not apply to loans made by banks or other financial institutions or to any
indebtedness created as part of a retail installment or credit card transaction, if
the loan is made or the indebtedness created in the lender's regular course of
business on terms available to members of the public without regard to the
elected officer's official status.
D. No public official who is exempt from the state civil service system
pursuant to subdivisions (c), (d), (e), (fl, and (g) of Section 4 of Article VII of the
Constitution shall, while he or she holds office, receive a personal loan from any
person who has a contract with the state or local government agency to which
that elected officer has been elected or over which that elected officer's agency
has direction and control. This subdivision shall not apply to loans made by
banks or other financial institutions or to any indebtedness created as part of a
retail installment or credit card transaction, if the loan is made or the
indebtedness created in the lender's regular course of business on terms
available to members of the public without regard to the elected officer's official
status. This subdivision shall not apply to loans made to a public official whose
duties are solely secretarial, clerical, or manual.
E. This section shall not apply to the following:
1. Loans made to the campaign committee of an elected officer
or candidate for elective office.
2. Loans made by a public official's spouse, child, parent,
grandparent, grandchild, brother, sister, parent -in -law, brother -in -law,
sister -in- law, nephew, niece, aunt, uncle, or first cousin, or the spouse of
any such persons, provided that the person making the loan is not acting
as an agent or intermediary for any person not otherwise exempted under
this section.
3. Loans from a person which, in the aggregate, do not exceed
two hundred fifty dollars ($250) at any given time.
4. Loans made, or offered in writing, before January 1, 1998.
Section 8.3. Loan Terms.
A. Except as set forth in subdivision (B), no elected officer of a state or
local government agency shall, from the date of his or her election to office
through the date he or she vacates office, receive a personal loan of five hundred
dollars ($500) or more, except when the loan is in writing and clearly states the
terms of the loan, including the parties to the loan agreement, date of the loan,
amount of the loan, term of the loan, date or dates when payments shall be due
on the loan and the amount of the payments, and the rate of interest paid on the
loan.
B. This section shall not apply to the following types of loans:
1. Loans made to the campaign committee of the elected
officer.
2. Loans made to the elected officer by his or her spouse, child,
parent, grandparent, grandchild, brother, sister, parent -in -law, brother -in-
law, sister -in -law, nephew, niece, aunt, uncle, or first cousin, or the spouse
of any such person, provided that the person making the loan is not acting
as an agent or intermediary for any person not otherwise exempted under
this section.
3. Loans made, or offered in writing, before January 1, 1998.
626891
626891
C. Nothing in this section shall exempt any person from any other
provision of Title 9 of the Government Code.
Section 8.4. Personal Loans.
A. Except as set forth in subdivision (B), a personal loan received by
any designated employee shall become a gift to the designated employee for the
purposes of this section in the following circumstances:
1. If the loan has a defined date or dates for repayment, when
the statute of limitations for filing an action for default has expired.
2. If the loan has no defined date or dates for repayment, when
one year has elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars
($100) or more was made on the loan.
C. The date upon which the debtor has made payments
on the loan aggregating to less than two hundred fifty
dollars ($250) during the previous 12 months.
B. This section shall not apply to the following types of loans:
1.1. A loan made to the campaign committee of an elected officer
or a candidate for elective office.
2. A loan that would otherwise not be a gift as defined in this
title.
3. A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor has taken reasonable action to
collect the balance due.
4. A loan that would otherwise be a gift as set forth under
subdivision (A), but on which the creditor, based on reasonable business
considerations, has not undertaken collection action. Except in a criminal
action, a creditor who claims that a loan is not a gift on the basis of this
paragraph has the burden of proving that the decision for not taking
collection action was based on reasonable business considerations.
5. A loan made to a debtor who has filed for bankruptcy and
the loan is ultimately discharged in bankruptcy.
-10-
C. Nothing in this section shall exempt any person from any other
provisions of Title 9 of the Government Code.
Section 9. Disqualification. No designated employee shall make, participate in
making, or in any way attempt to use his or her official position to influence the making
of any governmental decision which he or she knows or has reason to know will have a
reasonably foreseeable material financial effect, distinguishable from its effect on the
public generally, on the official or a member of his or her immediate family or on:
A. Any business entity in which the designated employee has a direct
or indirect investment worth on thousand dollars ($1,000) or more;
B. Any real property in which the designated employee has a direct or
indirect interest worth one thousand dollars ($1,000) or more;
C. Any source of income, other than gifts and other than loans by a
commercial lending institution in the regular course of business on terms
available to the public without regard to official status, aggregating two hundred
fifty dollars ($250) or more in value provided to, received by or promised to the
designated employee within 12 months prior to the time when the decision is
made;
D. Any business entity in which the designated employee is a director,
officer, partner, trustee, employee, or holds any position of management; or
E. Any donor of, or any intermediary or agent for a donor of, a gift or
gifts aggregating $300 or more provided to, received by, or promised to the
designated employee within 12 months prior to the time when the decision is
made.
Section 9.3. Legally Required Participation. No designated employee shall
be prevented from making or participating in the making of any decision to the extent his
or her participation is legally required for the decision to be made. The fact that the vote
of a designated employee who is on a voting body is needed to break a tie does not
make his or her participation legally required for purposes of this Section.
Section 9.5 Disqualification of State Officers and Employees. In addition to
the general disqualification provisions of Section 9, no state administrative official shall
make, participate in making, or use his or her official position to influence any
governmental decision directly relating to any contract where the state administrative
official knows or has reason to know that any party to the contract is a person with
whom the state administrative official, or any member of his or her immediate family
has, within 12 months prior to the time when the official action is to be taken:
626891
- 11 -
A. Engaged in a business transaction or transactions on terms not
available to members of the public, regarding any investment or interest in real
property; or
B. Engaged in a business transaction or transactions on terms not
available to members of the public regarding the rendering of goods or services
totaling in value one thousand dollars ($1,000) or more.
Section 10. Manner of Disqualification. When a designated employee
determines that he or she should not make a governmental decision because he or she
has a disqualifying interest in it, the determination not to act must be accompanied by
disclosure of the disqualifying interest. In the case of a voting body, this determination
and disclosure shall be made part of the agency's official record; in the case of a
designated employee who is the head of an agency, this determination and disclosure
shall be made in writing to his or her appointing authority; and in the case of other
designated employees, this determination and disclosure shall be made in writing to the
designated employee's supervisor.
Section 11. Assistance of the Commission and Counsel. Any designated
employee who is unsure of his or her duties under this code may request assistance
from the Fair Political Practices Commission pursuant to Government Code Section
83114 or from the attorney for his or her agency, provided that nothing in this Section
requires the attorney for the agency to issue any formal or informal opinion.
Section 12. Violations. This code has the force and effect of law. Designated
employees violating any provision of this code are subject to the administrative, criminal
and civil sanctions provided in the Political Reform Act, Government Code Sections
81000 - 91015. In addition, a decision in relation to which a violation of the
disqualification provisions of this code or of Government Code Section 87100 or 87450
has occurred may be set aside as void pursuant to Government Code Section 91003.
626891
-12-