Lancaster Municipal Code Ch. 2.40 Conflict of Interest Code

This chapter shall be known as the conflict of interest code of the city.

(Ord. 656 § 1 (part), 1994: prior code § 2-11.1)

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

(Ord. 656 § 1 (part), 1994: prior code § 2-11.2)

The persons holding those positions contained in the "List of Designated Employees" which shall be adopted by a resolution of the city council of the city and which may be amended from time to time, and which is incorporated herein by reference and made a part of this code as though it were set out in full, 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.

(Ord. 656 § I (part), 1994: prior code § 2-11.3)

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 city 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 Section 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 the city 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 which shall be adopted by a resolution of the city council of the city, which may be amended from time to time, and which is incorporated herein by reference and made a part of this code as though it were set out in full, specify which kinds of financial interests are reportable. Such a designated employee shall disclosure 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 It has been determined that the financial 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.

(Ord. 682 § 1, 1995; Ord. 656 § 1 (part), 1994: prior code § 2-11.4)

* 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 flied in place of an original is signed and verified by the designated employee is if it were an original. See Government Code Section 81004.

A. General.

1. Any elected officer, candidate, committee, or other person required to file statements, reports or other documents ("statements") as required by Chapter 4 of the Political Reform Act (California Government Code section 84100, et seq.) ("filers") may file such statements using the city clerk's online system according to procedures established by the city clerk (the "procedures").

2. The city clerk shall have the authority to establish and amend the procedures, as necessary, to accomplish the following:

a. Ensure that the online system complies with the requirements set forth in Section 84615 of the Government Code, as may be amended from time to time;

b. Meet the purpose and intent of this section and comply with other applicable law; and

c. Ensure the integrity of the data transmitted and include safeguards against efforts to tamper with, manipulate, alter, or subvert the data.

3. Online filings made under this chapter will only be accepted if made in the standardized record format that is developed by the California Secretary of State pursuant to Section 84602(a)(2) of the California Government Code, as may be amended from time to time, and that is compatible with the secretary of state's system for receiving an online or electronic filing.

B. Procedures for Utilizing Online Filing.

1. During the period commencing with the effective date of the ordinance from which this section derives, an elected officer, candidate, or committee shall use the electronic filing system by electronically filing a Statement that is required to be filed with the city clerk pursuant to Chapter 4 of the Political Reform Act (California Government Code Section 84100 et seq.), unless the officer, candidate or committee is exempt pursuant to California Government Code Section 84615.

2. Any elected officer, candidate, or committee who has electronically filed a statement using the city clerk's online system is not required to file a copy of that document in paper format with the city clerk.

3. The city clerk shall issue an electronic confirmation that notifies the filer that the statement was received, which notification shall include the date and the time that the statement was received and the method by which the filer may view and print the data received by the city clerk. The date of filing for a statement filed online shall be the day that it is received by the city clerk.

4. If the city clerk's online system is not capable of accepting a statement, an elected officer, candidate, or committee shall file that statement in paper format with the city clerk.

5. The online or electronic filing system shall include a procedure for filers to comply with the requirement that they sign statements and reports under penalty of perjury and verify filings pursuant to Section 81004.

6. The online filing system shall enable electronic filers to complete and submit filings free of charge.

C. Availability of Statements for Public Review, Record Retention.

1. The city clerk's system shall make all the data filed available on the Internet in an easily understood format that provides the greatest public access. The data shall be made available free of charge and as soon as possible after receipt. The data made available on the Internet shall not contain the street name and building number of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. The city clerk's office shall make a complete, unredacted copy of the statement, including any street names, building numbers, and bank account numbers disclosed by the filer, available to any persons, and available to any person upon request.

2. The city clerk's office shall maintain, for a period of at least ten (10) years commencing from the date filed, a secured, official version of each online or electronic statement which shall serve as the official version of that record for purpose of audits and any other legal purpose.

(Ord. No. 1050, § 1, 10-23-2018)

of filing.

All designated employees shall file statements of economic interests with the city clerk, who shall be the filing officer.*

(Ord. 656 § 1 (part), 1994: prior code § 2-11.5)

* See Government Code Section 81010 and 2 California of Regulations Section 18115 for the duties of filing officers.

of filing.

A. Initial Statements. All designated employees employed by the city on the effective date of this code, as originally adopted, promulgated and approved by the city council, shall file statements within thirty (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 thirty (30) days after the effective date of this amendment.

B. Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within thirty (30) days after assuming the designated positions, or if subject to State Senate confirmation, thirty (30) days after being nominated or appointed.

C. Annual Statements. All designated employees shall file statements no later than April 1st.

D. Leaving Office Statements. All persons who leave designated positions shall file statements within thirty (30) days after leaving office.

(Ord. 656 § 1 (part), 1994: prior code § 2-11.6)

A. Any person who resigns within twelve (12) months of initial appointment, or within thirty (30) days of the date of notice provided by the city clerk 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.

B. Any person who resigns a position within thirty (30) days of the date of a notice from the city clerk shall do both of the following:

1. File a written resignation with the appointing power; and

2. File a written statement with the city clerk 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 position to influence any decision of the city or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position.

(Ord. 682 § 2, 1995; Ord. 656 § 1 (part), 1994: prior code § 2-11.7)

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 twelve (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 twelve (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 begins 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.

(Ord. 656 § I (part), 1994: prior code § 2-11.8)

Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the city, and shall contain the following information:

A. Investments and Real Property Disclosure. When an investment or an interest in real property * is required to be reported, ** the statement shall contain the following:

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 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 two thousand ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000).

B. Personal Income Disclosure. When personal income is required to be reported,*** the statement shall contain:

1. The name and address of each source of income aggregating five hundred dollars ($500) 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), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000);

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 or trust, including income of a sole proprietorship is required to be reported,****the statement shall contain:

1. The name, address, and 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.

A. No member of a state board or commission, and no designated employee of a state or 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.

1. Subdivisions (a), (b) and (c) of Government Code Section 89501 shall apply to the prohibitions in this section.

2. This section shall not limit or prohibit payments, advances or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506.

B. Prohibition on Receipt of Gifts in Excess of Three Hundred Twenty Dollars. 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 three hundred twenty dollars ($320.00) in a calendar year from any single 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.

1. Subdivision (e), (f) and (g) of Government Code Section 89503 shall apply to the prohibitions in this section.

(Ord. 798 § 1 (part), 2001; Ord. 748 § 1, 1999)

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 govern-ment 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), (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 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 five hundred dollars ($500) at any given time;

4. Loans made, or offered in writing, before January 1, 1998.

(Ord. 798 § 1 (part), 2001)

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.

C. Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code.

(Ord. 798 § 1 (part), 2001)

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 two thousand dollars ($2,000) or more;

B. Any real property in which the designated employee has a direct or indirect interest worth two thousand dollars ($2,000) 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 five hundred dollars ($500) or more in value provided to, received by or promised to the designated employee within twelve (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 or any intermediary or agent for a donor of, a gift or gifts aggregating three hundred twenty dollars ($320) or more provided to, received by, or promised to the designated employee within twelve (12) months prior to the time when the decision is made.

(Ord. 798 § 1 (part), 2001)

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 loans:

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.

C. Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code.

(Ord. 798 § 1 (part), 2001; Ord. 656 § 1 (part), 1994: prior code § 2-11.11)

When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying financial 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 body's official record; in the case of a designated employee who is the head of a department, 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.

(Ord. 798 § 1 (part), 2001; Ord. 656 § 1 (part), 1994: prior code § 2-11.12)

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 city attorney; provided, that nothing in this section requires the city attorney to issue any formal or informal opinion.

(Ord. 656 § 1 (part), 1994: prior code § 2-11.13)

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 through 91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or the Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003.

(Ord. 682 § 4, 1995; Ord. 656 § 1 (part), 1994; prior code § 2-11.14)