Section § 87300

Explanation

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.

Every agency shall adopt and promulgate a Conflict of Interest Code pursuant to the provisions of this article. A Conflict of Interest Code shall have the force of law and any violation of a Conflict of Interest Code by a designated employee shall be deemed a violation of this chapter.

Section § 87301

Explanation

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.

It is the policy of this act that Conflict of Interest Codes shall be formulated at the most decentralized level possible, but without precluding intra-departmental review. Any question of the level of a department which should be deemed an “agency” for purposes of Section 87300 shall be resolved by the code reviewing body.

Section § 87302

Explanation

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.

Each conflict of interest code shall contain the following provisions:
(a)CA Government Code § 87302(a) Specific enumeration of the positions within the agency, other than those specified in Section 87200, that involve the making or participation in the making of decisions which may foreseeably have a material effect on any financial interest and for each such enumerated position, the specific types of investments, business positions, interests in real property, and sources of income which are reportable. An investment, business position, interest in real property, or source of income shall be made reportable by the conflict of interest code if the business entity in which the investment or business position is held, the interest in real property, or the income or source of income may foreseeably be affected materially by any decision made or participated in by the designated employee by virtue of the designated employee’s position.
(b)CA Government Code § 87302(b) Requirements that each designated employee, other than those specified in Section 87200, file statements at times and under circumstances described in this section, disclosing reportable investments, business positions, interests in real property, and income. The information disclosed with respect to reportable investments, interests in real property, and income shall be the same as the information required by Sections 87206 and 87207. The first statement filed under a conflict of interest code by a designated employee shall disclose any reportable investments, business positions, interests in real property, and income. An initial statement shall be filed by each designated employee within 30 days after the effective date of the conflict of interest code, disclosing investments, business positions, and interests in real property held on the effective date of the conflict of interest code and income received during the 12 months before the effective date of the conflict of interest code. Thereafter, each new designated employee shall file a statement within 30 days after assuming office, or, if subject to State Senate confirmation, 30 days after being appointed or nominated, disclosing investments, business positions, and interests in real property held on, and income received during the 12 months before, the date of assuming office or the date of being appointed or nominated, respectively. Each designated employee shall file an annual statement, at the time specified in the conflict of interest code, disclosing reportable investments, business positions, interest in real property, and income held or received at any time during the previous calendar year or since the date the designated employee took office if during the calendar year. Every designated employee who leaves office shall file, within 30 days of leaving office, a statement disclosing reportable investments, business positions, interests in real property, and income held or received at any time during the period between the closing date of the last statement required to be filed and the date of leaving office.
(c)CA Government Code § 87302(c) Specific provisions setting forth any circumstances under which designated employees or categories of designated employees must disqualify themselves from making, participating in the making, or using their official position to influence the making of any decision. Disqualification shall be required by the Conflict of Interest Code when the designated employee has a financial interest as defined in Section 87103, which it is reasonably foreseeable may be affected materially by the decision. A designated employee shall not be required to disqualify the employee’s own self with respect to any matter that could not legally be acted upon or decided without the designated employee’s participation.
(d)CA Government Code § 87302(d) For any position enumerated pursuant to subdivision (a), an individual who resigns the position within 12 months following initial appointment or within 30 days of the date of a notice mailed by the filing officer of the individual’s filing obligation, whichever is earlier, is not deemed to assume or leave office, provided that during the period between appointment and resignation, the individual does not make, participate in making, or use the 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. Within 30 days of the date of a notice mailed by the filing officer, the individual shall do both of the following:
(1)CA Government Code § 87302(d)(1) File a written resignation with the appointing power.
(2)CA Government Code § 87302(d)(2) File a written statement with the filing officer on a form prescribed by the commission and signed under the penalty of perjury stating that the individual, during the period between appointment and resignation, did not make, participate in the making, or use the 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 § 87302.3

Explanation

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.

(a)CA Government Code § 87302.3(a) Every candidate for an elective office that is designated in a conflict of interest code shall file a statement disclosing the candidate’s investments, business positions, interests in real property, and income received during the immediately preceding 12 months, as enumerated in the disclosure requirements for that position. The statement shall be filed with the election official with whom the candidate’s declaration of candidacy or other nomination documents to appear on the ballot are required to be filed and shall be filed no later than the final filing date for the declaration or nomination documents.
(b)CA Government Code § 87302.3(b) This section does not apply to either of the following:
(1)CA Government Code § 87302.3(b)(1) A candidate for an elective office designated in a conflict of interest code who has filed an initial, assuming office, or annual statement pursuant to that conflict of interest code within 60 days before the deadline specified in subdivision (a).
(2)CA Government Code § 87302.3(b)(2) A candidate for an elective office who has filed a statement for the office pursuant to Section 87302.6 within 60 days before the deadline specified in subdivision (a).

Section § 87302.6

Explanation

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.

Notwithstanding Section 87302, a member of a board or commission of a newly created agency shall file a statement at the same time and in the same manner as those individuals required to file pursuant to Section 87200. A member shall file the member’s statement pursuant to Section 87302 once the agency adopts an approved conflict of interest code.

Section § 87303

Explanation

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.

No conflict of interest code shall be effective until it has been approved by the code reviewing body. Each agency shall submit a proposed conflict of interest code to the code reviewing body by the deadline established for the agency by the code reviewing body. The deadline for a new agency shall be not later than six months after it comes into existence. Within 90 days after receiving the proposed code or receiving any proposed amendments or revisions, the code reviewing body shall do one of the following:
(a)CA Government Code § 87303(a) Approve the proposed code as submitted.
(b)CA Government Code § 87303(b) Revise the proposed code and approve it as revised.
(c)CA Government Code § 87303(c) Return the proposed code to the agency for revision and resubmission within 60 days. The code reviewing body shall either approve the revised code or revise it and approve it. When a proposed conflict of interest code or amendment is approved by the code reviewing body, it shall be deemed adopted and shall be promulgated by the agency.

Section § 87304

Explanation

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.

If any agency fails to submit a proposed conflict of interest code or amendments, or if any state agency fails to report amendments pursuant to subdivision (b) of Section 87306 within the time limits prescribed pursuant to Section 87303 or 87306, the code reviewing body may issue any appropriate order directed to the agency or take any other appropriate action, including the adoption of a conflict of interest code for the agency. If the code reviewing body does not issue an appropriate order or take other action within 90 days of the deadline imposed on the agency as prescribed in Section 87303 or 87306, the commission may issue any appropriate order directed to the agency or take any other appropriate action, including the adoption of a conflict of interest code for the agency. The commission shall consult with the agency before ordering the adoption of a conflict of interest code for the agency.

Section § 87305

Explanation

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.

If after six months following the deadline for submission of the proposed Conflict of Interest Code to the code reviewing body no Conflict of Interest Code has been adopted and promulgated, the superior court may, in an action filed by the commission, the agency, the code reviewing body, any officer, employee, member or consultant of the agency, or any resident of the jurisdiction, prepare a Conflict of Interest Code and order its adoption by the agency or grant any other appropriate relief. The agency and the code reviewing body shall be parties to any action filed pursuant to this section.

Section § 87306

Explanation

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.

(a)CA Government Code § 87306(a) Every agency shall amend its Conflict of Interest Code, subject to the provisions of Section 87303, when change is necessitated by changed circumstances, including the creation of new positions which must be designated pursuant to subdivision (a) of Section 87302 and relevant changes in the duties assigned to existing positions. Amendments or revisions shall be submitted to the code reviewing body within 90 days after the changed circumstances necessitating the amendments have become apparent. If after nine months following the occurrence of those changes the Conflict of Interest Code has not been amended or revised, the superior court may issue any appropriate order in an action brought under the procedures set forth in Section 87305.
(b)CA Government Code § 87306(b) Notwithstanding subdivision (a), every state agency shall submit to the code reviewing body a biennial report identifying changes in its code, including, but not limited to, all new positions designated pursuant to subdivision (a) of Section 87302, changes in the list of reportable sources of income, and relevant changes in the duties assigned to existing positions. These reports shall be submitted no later than March 1 of each odd-numbered year.

Section § 87306.5

Explanation

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.

(a)CA Government Code § 87306.5(a) No later than July 1 of each even-numbered year, the code reviewing body shall direct every local agency which has adopted a Conflict of Interest Code in accordance with this title to review its Conflict of Interest Code and, if a change in its code is necessitated by changed circumstances, submit an amended Conflict of Interest Code in accordance with subdivision (a) of Section 87302 and Section 87303 to the code reviewing body.
(b)CA Government Code § 87306.5(b) Upon review of its code, if no change in the code is required, the local agency head shall submit a written statement to that effect to the code reviewing body no later than October 1 of the same year.

Section § 87307

Explanation

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.

An agency may at any time amend its Conflict of Interest Code, subject to the provisions of Section 87303, either upon its own initiative or in response to a petition submitted by an officer, employee, member or consultant of the agency, or a resident of the jurisdiction. If the agency fails to act upon such a petition within ninety days, the petition shall be deemed denied. Within thirty days after the denial of a petition, the petitioner may appeal to the code reviewing body. The code reviewing body shall either dismiss the appeal or issue an appropriate order to the agency within ninety days.

Section § 87308

Explanation

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.

Judicial review of any action of a code reviewing body under this chapter may be sought by the commission, by the agency, by an officer, employee, member or consultant of the agency, or by a resident of the jurisdiction.

Section § 87309

Explanation

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.

A conflict of interest code or amendment shall not be approved by the code reviewing body or upheld by a court if it:
(a)CA Government Code § 87309(a) Fails to provide reasonable assurance that all foreseeable potential conflict of interest situations will be disclosed or prevented;
(b)CA Government Code § 87309(b) Fails to provide to each affected person a clear and specific statement of that person’s duties under the code; or
(c)CA Government Code § 87309(c) Fails to adequately differentiate between designated employees with different powers and responsibilities.

Section § 87310

Explanation

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.

If the duties of a designated employee are so broad or indefinable that the requirements of Section 87309 cannot be complied with, the Conflict of Interest Code shall require the designated employee to comply with the requirements of Article 2 of this chapter.

Section § 87311

Explanation

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.

The review of proposed Conflict of Interest Codes by the Commission and by the Attorney General and the preparation of proposed Conflict of Interest Codes by state agencies shall be subject to the Administrative Procedure Act. The review and preparation of Conflict of Interest Codes by local government agencies shall be carried out under procedures which guarantee to officers, employees, members, and consultants of the agency and to residents of the jurisdiction adequate notice and a fair opportunity to present their views.

Section § 87311.5

Explanation

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.

(a)CA Government Code § 87311.5(a) Notwithstanding the provisions of Section 87311, the review of the Conflict of Interest Code of an agency in the judicial branch of government shall not be subject to the provisions of the Administrative Procedure Act. The review and preparation of Conflict of Interest Codes by these agencies shall be carried out under procedures that guarantee to officers, employees, members, and consultants of the agency and to residents of the jurisdiction adequate notice and a fair opportunity to present their views.
(b)CA Government Code § 87311.5(b) Conflict of Interest Codes of the Judicial Council and the Commission on Judicial Performance shall not be subject to the provisions of subdivision (c) of Section 87302.

Section § 87312

Explanation

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.

The Commission shall, upon request, provide technical assistance to agencies in the preparation of Conflict of Interest Codes. Such assistance may include the preparation of model provisions for various types of agencies. Nothing in this section shall relieve each agency of the responsibility for adopting a Conflict of Interest Code appropriate to its individual circumstances.

Section § 87313

Explanation

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.

A person shall not make a gift of fifty dollars ($50) or more in a calendar month on behalf of another, or while acting as the intermediary or agent of another to a person whom the intermediary or agent knows or has reason to know may be required to disclose the gift pursuant to a conflict of interest code, without disclosing to the recipient of the gift both the intermediary or agent’s own full name, street address, and business activity, if any, and the full name, street address, and business activity, if any, of the actual donor. The recipient of the gift shall include in the recipient’s Statement of Economic Interests the full name, street address, and business activity, if any, of the intermediary or agent and the actual donor.

Section § 87314

Explanation

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.

(a)CA Government Code § 87314(a) A board, commission, or agency of a public pension or retirement system shall attach to its Conflict of Interest Code an appendix entitled “Agency Positions that Manage Public Investments for Purposes of Section 87200 of the Government Code.” The appendix shall list each position with the board, commission, or agency for which an individual occupying the position is required to file a Statement of Economic Interests as a public official who manages public investments within the meaning of Section 87200. The board, commission, or agency shall post the appendix on its Internet Web site in a manner that makes it easily identifiable and accessible by persons who view that Web site.
(b)Copy CA Government Code § 87314(b)
(1)Copy CA Government Code § 87314(b)(1) For purposes of this section, “public official who manages public investments” includes a salaried or unsalaried member of a committee, board, commission, or other entity that exists as, or within, a governmental agency and that possesses decisionmaking authority.
(2)CA Government Code § 87314(b)(2) A committee, board, commission, or other entity possesses decisionmaking authority for purposes of this section if any of the following apply:
(A)CA Government Code § 87314(b)(2)(A) The entity may make a final governmental decision.
(B)CA Government Code § 87314(b)(2)(B) The entity may compel a governmental decision or prevent a governmental decision, either by virtue of possessing exclusive power to initiate the decision or by having veto authority that may not be overridden.
(C)CA Government Code § 87314(b)(2)(C) The entity makes substantive recommendations that are, and over an extended period of time have been, regularly approved, without significant amendment or modification, by another public official or governmental agency.
(3)CA Government Code § 87314(b)(3) A committee, board, commission, or other entity does not possess decisionmaking authority for purposes of this section if it is formed for the sole purpose of researching a subject and preparing a report or recommendation for submission to another governmental entity that has final decisionmaking authority.