Conflicts of InterestConflict of Interest Codes
Section § 87300
This law requires every government agency to create and establish a Conflict of Interest Code, which acts like a law. If an employee covered by this code breaks it, it's considered a violation of the law.
Section § 87301
This law states that Conflict of Interest Codes should be created as locally as possible, meaning at the lowest level within an organization. However, these codes can still be reviewed internally by broader department levels. If there's any confusion about what department level qualifies as an 'agency' for these purposes, the organization responsible for reviewing the codes will make that decision.
Section § 87302
This law requires conflict of interest codes to specifically list agency positions that could influence financial interests. Employees in these positions must disclose investments, business interests, property interests, and income if affected by decisions they make or participate in. These disclosures are due initially within 30 days, annually, and when leaving office. Employees must also disqualify themselves from decisions where they have a financial interest that could be materially affected. If someone resigns within a specific time frame, without participating or receiving payment, they are not considered to have assumed or left office. They must file a resignation and a statement confirming they haven't influenced decisions or received payments.
Section § 87302.3
If you're running for an elective office and the position is covered by a conflict of interest code, you must disclose details about your investments, property, business roles, and income from the past year. This must be submitted by the deadline for your candidacy papers.
However, if you've already filed a similar disclosure within the last 60 days, you don't have to file again. This exemption applies if you've filed under a specific conflict of interest code or under Section 87302.6.
Section § 87302.6
This law states that when a new government agency is created, board or commission members must file a financial disclosure statement following the same rules as other public officials, as outlined in a different section of the law. Once the agency has its official conflict of interest policy in place, members must file their statement according to those new guidelines.
Section § 87303
A conflict of interest code must be approved by a designated code reviewing body before it becomes effective. Agencies are required to submit their proposed codes by a specific deadline, which is set by the code reviewing body. New agencies have a maximum of six months to submit their codes after they are established. Once the code reviewing body receives a proposed code, it has 90 days to either approve it, revise and approve it, or return it for revisions to the agency with a 60-day resubmission requirement. Once approved, the code is officially adopted and implemented by the agency.
Section § 87304
If a government agency doesn't submit or update its conflict of interest code on time, the body in charge of reviewing these codes can order the agency to comply or take action on its behalf, like creating a conflict of interest code for them. If this body doesn't act within 90 days after the deadline, a commission can step in to issue orders or take similar action, but it must talk to the agency first before finalizing the code.
Section § 87305
If six months pass without a Conflict of Interest Code being created after it was supposed to be submitted, the superior court can step in. This means the court can create the necessary code and make the agency adopt it, or take other suitable actions. This can happen if anyone like the commission, agency personnel, or a local resident files a legal action. Both the agency in question and the reviewing body must be involved in any court action.
Section § 87306
Every California agency must update its Conflict of Interest Code when there are changes, like new positions or changes to job duties, relevant to conflicts of interest. These updates must be submitted within 90 days of the changes becoming clear. If not updated within nine months, the agency might face court orders.
Additionally, state agencies must provide a report every two years by March 1 of odd-numbered years, detailing any changes, new positions, income sources, and job duty changes.
Section § 87306.5
Every two years by July 1st, a designated group must ensure that all local agencies check and update their Conflict of Interest Codes if necessary. If an update is needed due to changes, they must submit the revised code as specified by law. If no updates are needed, the agency head must send a written confirmation by October 1st.
Section § 87307
This law says that an agency in California can update its Conflict of Interest Code anytime, either on its own or if requested by someone connected to the agency or a local resident. If the agency doesn't respond to a request within 90 days, the request is automatically denied. The person who made the request can then appeal to a code reviewing body within 30 days of the denial. This reviewing body has 90 days to either dismiss the appeal or tell the agency what to do next.
Section § 87308
If a decision is made by a code reviewing body, the following groups can ask a court to review it: the commission, the agency, its officers, employees, members or consultants, and local residents.
Section § 87309
This law section states that a conflict of interest code or amendment won't be approved or supported by a court if it doesn't meet certain standards. Firstly, it must ensure all potential conflicts of interest are prevented or disclosed. Secondly, it should provide clear duties to those affected. Lastly, it needs to distinguish between employees with different responsibilities and powers.
Section § 87310
If an employee has such broad or unclear job duties that it's impossible to follow certain conflict of interest rules, they must instead follow the guidelines outlined in Article 2 of the same chapter.
Section § 87311
This law section says that when creating or reviewing Conflict of Interest Codes, state agencies must follow a set of rules called the Administrative Procedure Act. For local government agencies, there should be a process that ensures everyone involved, including officers, employees, and residents, is given enough notice and a chance to express their opinions.
Section § 87311.5
This section explains that the rules for reviewing conflict of interest codes for agencies in the judicial branch are not governed by the standard procedures in the Administrative Procedure Act. Instead, these agencies must create their own review process that provides notice and allows input from officials and the public.
Moreover, the conflict of interest codes for the Judicial Council and the Commission on Judicial Performance have additional exemptions and are not subject to a specific part of another statute.
Section § 87312
This law states that if an agency asks, the Commission will help them create Conflict of Interest Codes. This help can include sample provisions for different agency types. However, each agency still has to make a Conflict of Interest Code that fits its own unique situation.
Section § 87313
This law states that if someone gives a gift of $50 or more within a month on behalf of another person, they must reveal both their own name, address, and business, as well as the donor's details, to the gift's recipient. This is necessary when the recipient might have to disclose the gift due to conflict of interest rules. The recipient must then list both the giver's and the donor's details in their financial disclosure statement.
Section § 87314
This law requires public pension or retirement boards, commissions, or agencies to create an appendix with a list of positions that manage public investments. These positions require the holder to file a Statement of Economic Interests. The list must be posted on the entity's website so it's easy to find and view.
The term "public official who manages public investments" includes any member of a body with decision-making power, whether paid or unpaid. Decision-making authority includes the power to make final decisions, enforce or block decisions due to exclusive power or veto rights, or give recommendations regularly adopted by public entities without major changes. Entities only conducting research or forming recommendations for others with decision-making power are not included.