Beaumont Municipal Code Ch. 2.36 Employee Conflict of Interest

In compliance with the Political Reform Act of 1974, California Government Code Section 81000, et seq., and specifically with Section 87300 et seq., the City Council adopts this Conflict of Interest Code which shall be applicable to all designated employees of the agency. The requirements of this code are in addition to other requirements of the Act such as the general prohibition against conflicts of interest contained in Government Code Section 87100, and to any other state or local laws pertaining to conflicts of interest.

(Ord. 561 §1, 1982)

The definitions contained in the Political Reform Act of 1974, the regulations of the Fair Political Practices Commission (2 Cal. Adm. Code Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code.

(Ord. 561 §2, 1982)

The persons holding positions listed in Appendix A, set out in Section 2.36.110, are designated employees. It has been determined that these officers and employees make or participate in the making of decisions which may foreseeably have a material effect on financial interest

(Ord. 561 §3, 1982)

A designated employee shall be assigned one or more of the disclosure categories set forth in Appendix a, set out in Section 2.36.120. It has been determined that the financial interests set forth in a designated employee's disclosure category are the types of financial interests which he or she foresee ably can affect materially through the conduct of his or her office. Each designated employee shall file statements of economic interests disclosing his or her financial interests as required by the applicable disclosure category.

(Ord. 561 §4, 1982).

A. All designated employees required to submit a statement of economic interests, shall file the original with the City Clerk, who shall be the filing officer for all designated employees.

B. Upon the receipt of the statement of economic interests from the designated employees, the City Clerk shall make and retain a copy and forward the originals of these statements to the City Council who shall be the filing officer, within five days of the filing deadline or five days of receipt in the case of statements filed late.

(Ord. 561 §5, 1982)

A. Initial Statements. All designated employees employed by the agency on the effective date of the ordinance codified in this chapter shall file statements within 30 days after the effective date of the ordinance codified in this chapter.

B. Assuming Office Statements. All persons assuming designated positions after the effective date of the ordinance codified in this chapter shall file statements within ten days after assuming the designated positions.

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.

(Ord. 561 §6, 1982)

A. Contents of Initial Statements. Initial statements shall disclose any reportable investments and interests in real property held on the effective date of the ordinance codified in this chapter.

B. Assuming Office Statements. Assuming office statements shall disclose any reportable investments and interests in real property (and management positions) held on the date of assuming office, or on the date of nomination, whichever is the earlier.

C. Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, and income held or received during the previous 'calendar year; provided, however, that the period covered by an employee's first annual statements shall begin on the effective date of the ordinance codified in this chapter or the date of assuming office, whichever is the later.

D. Contents of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property, and income held or received during the period between the closing date of the last statement filed and the date of leaving office.

(Ord. 561 §7, 1982)

Disclosure statements shall be made on forms supplied by the Fair Political Practices Commission, and shall contain the following information:

A. Contents of Investment and Real Property Reports. An investment in or other interest in real property that otherwise is required to be reported only for the purposes of disclosure only, and not by way of disqualification, need not be reported for purposes of the Political Reform Act (hereafter called the "Act") if any of the following conditions exist:

1. If the real property is the principal residence of the filer; or

2. If the investment or interest has a fair market value of less than $1,000.00.

However, investments or interest in real property of an individual include those held by the individual's spouse and/or dependent children as well as including any pro rata share of any investment or interest in real property of a business entity or trust in which the individual, his or her spouse or children own, in the aggregate, a direct, indirect or beneficial interest of ten percent or greater.

1. A statement of the nature of the investment or interest;

2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;

3. The address and other precise location of the real property;

4. A statement whether the fair market value of the investment or interest in real property exceeds $1,000.00, exceeds $10,000.00, or exceeds $100,000.00.

B. Contents of Personal Income Reports. When personal income is required to be reported, a designated employee's income includes his or her community property interest in the income of his or her spouse, the statement shall contain:

1. The name and address of each source of income aggregating $250.00, or more in value, or $25.00 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 was $1,000.00 or less, greater than $1,000.00, or greater than $10,000.00;

3. A description of the consideration, if any, for which the income was received;

4. In the case of a gift, the name and address of the donor, a description of the gift, the amount or value of the gift, and the date on which the gift was received.

C. Contents of Business Entity Income Reports. When income of a business entity, including income of a sole proprietorship, is required to be reported, income of a business entity is reportable if the direct, indirect or beneficial interest of the filer, spouse and dependent children in the business entity aggregates a ten percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the source is within one of the disclosure categories of the filer. The statement shall contain:

1. The name, address and a general description of the business activity of the business entity;

2. The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than $10,000.00.

D. Contents of Consultant's Statements.

1. The City Manager may determine in writing that a particular consultant is hired to perform a range of duties that are limited in scope and thus is not required to comply with the disclosure requirements described in Appendix A, set out in Section 2.36.110.

2. Such determination shall include a description of the consultant's duties and, based on that description, a statement of the extent of disclosure requirements.

3. The City Manager shall forward a copy of this determination to the City Council.

4. Nothing herein excuses any such consultant from any other provision of this conflict of interest code.

E. Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or 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.

(Ord. 561 §8, 1982)

A. Designated employees must disqualify themselves from making, participating in the making or using their official positions to influence the making of any governmental decision which will foreseeably have a material financial effect, distinguishable from its effect on the public generally, on:

1. Any business entity in which the designated employee has a direct or indirect interest worth more than $1,000.00;

2. Any real property in which the designated employee has a direct or indirect interest worth more than $1,000.00;

3. Any source of income, other than loans by a commercial lending institution in the regular course of business, aggregating $250.00 or more in value received by or promised to the designated employee within 12 months prior to the time when the decision is made; or

4. Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management.

B. 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.

(Ord. 561 §9, 1982)

A designated employee required to disqualify himself or herself shall notify his or her supervisor in writing. This notice shall be forwarded to the head of the designated employee's department, who shall record the employee's disqualification.

Upon receipt of such statement, the supervisor shall reassign the matter to another employee.

(Ord. 561 §10, 1982)

Appendix A is codified in this chapter reads as follows:

(Amended by Resolution No. 2010-33, 12-7-2010)

Appendix B codified in this chapter reads as follows:

DISCLOSURE CATEGORIES

The disclosure categories listed below identify the types of investments, business entities, sources of income, including gifts, loans and travel payments, or real property which the Designated Employee must disclose for each disclosure category to which he or she is assigned.

Category 1: All investments, business positions and sources of income, including gifts, loans and travel payments, that are located in, do business in, or that own real property in the City.

Category 2: All interests in real property which is located in whole or in part within, or not more than two miles outside, the City.

Category 3: All investments, business positions and sources of income, including gifts, loans and travel payments, that are engaged in land development, construction, or the acquisition or sale of real property in the City.

Category 4: All investments and business positions and sources of income, including gifts, loans and travel payments, that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City.

Category 5: All investments and business positions and sources of income, including gifts, loans and travel payments, that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Designated Employee's department, unit or division.

(Amended by Resolution No. 2010-33, 12-7-2010)