Ordinance No. 706 - Conflict of Interest CodeORDINANCE NO. 706
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF ROSEMEAD ADOPTING A
STANDARDIZED CONFLICT OF INTEREST CODE
FOR THE CITY OF ROSEMEAD AND THE
ROSEMEAD REDEVELOPMENT AGENCY
THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES HEREBY
ORDAIN AS FOLLOWS:
Section 1. The City Council finds, determines and declares:
(a) The Political Reform Act of 1974, California Government Code Sections
87300-87313, requires that government entities in the State of California adopt Conflict
of Interest Codes; and
(b) In 1977 the City of Rosemead adopted a standardized Conflict of Interest
• Code, including procedures for filing Statements of Economic Interests as stated therein;
and
(c) From time to time it is necessary to amend the list of Designated Positions
and Disclosure Categories, because of the establishment of new City Positions, and
additions and amendments to State laws, regulations or interpretations thereof; and
(d) The City Council, Planning Commissioners, City Manager and City Attorney
are required to file Statements of Economic Interests under State Government Code
Sections 87200-87210, and those sections recently have been amended to include the City
Treasurer and Finance Director.
Section 2. Sections 2250 through and including 2256 of the Rosemead Municipal
• Code are hereby repealed.
Section 3. New Sections 2250 and 2251 are hereby added to the Rosemead
Municipal Code to read as follows:
2250. The terms of 2 Cal. Adm. Code §18730 and any amendments to it
duly adopted by the Fair Political Practices Commission, along with the
following list of Designated Positions and Disclosure Categories, are hereby
incorporated by reference and constitute the Conflict of Interest Code of
the City of Rosemead and the Rosemead Redevelopment Agency.
Ord. No. 706
Pg. 112
Pursuant to Section 4(A) of the standard code, designated
employees shall file statements of economic interests with the City Clerk.
Upon receipt of the statements of the designated employees, the City Clerk
shall retain the originals and make the statements available for public
inspection.
2251. The following Designated Positions shall file Statements of
Economic Interest in accordance with the Assigned Disclosure Categories
listed for the position:
Designated Position Disclosure Category
Assistant City Manager 1
Executive Assistant 1
Administrative Aide 1
Building Official
1
City Clerk
1
• Traffic Engineer
1
City Engineer
1
Director of Parks and Recreation
1
Parks Supervisor
1
Planning Director
1
Assistant Planning Director
1
Planning Technician
1
• Code Enforcement Officer
1
Police Chief (Commander - Temple Station)
1
Fire Chief (Area Assistant Chief)
1
Members of Traffic Commission
1
Consultants to City or Agency
1
Ord. No. 706
Pg. #3
Consultants shall be included in the list of designated employees
and shall disclose pursuant to the broadest disclosure category in the code
subject to the following limitation:
The City Manager/Agency Executive Director may determine in
writing that a particular consultant, although a "designated position" is
hired to perform a range of duties that is limited in scope and thus is not
required to fully comply with the disclosure requirements described in this
section. Such written determination shall include a description shall
include a description of the consultant's duties and, based upon that
description, a statement of the extent of disclosure requirements. The City
Manager's determination is a public record and shall be retained for public
inspection in the same manner and location as this Conflict of Interest
Code.
DISCLOSURE CATEGORIES
1. Persons in this category must disclose all investments and
business positions in business entities, all sources of income, and all
interests in real property.
2. Persons in this category must disclose all sources of income;
• business positions in business entities; investments which pertain to a
business entity or activity dealing with real property,* and all interests in
real property.
3. Persons in this category must disclose business positions in
business entities; investments and income which pertain to a business entity
or activity dealing with real property.*
4. Persons in this category must disclose interests in real property
where the property is located within the boundaries of the City; business
positions in business entities; investments, and income from sources which
provide services, supplies, materials, machinery or equipment of the type
utilized by the City in any public works project.
• 5. Persons in this category must disclose interests in real property
where the property is located within the boundaries of the City; business
positions in business entities; investments and income which pertain to a
business entity or activity dealing with real property.*
6. Persons in this category must disclose investments which pertain
to a business entity conducting a business in the City which requires a
business license therefor pursuant to ordinance of the City.
Ord. No. 706
Pg. #4
'A Business Entity or Activity Dealing with Real Property Includes: The
sale, purchase, exchange, lease or rental, financing for its own account or
as a broker of real property, or the development, syndication, subdivision
of real property, or construction thereon, or buildings or structures.
Section 4. The City Clerk shall certify to the adoption of this Ordinance.
PASSED, APPROVED and ADOPTED this 1 ith day of Aug , 1992. AYOR
ATTEST:
ZCGC. G{/GLyi2,e~t/
CITY CLERK
•
I hereby certify that the foregoing Ordinance No. 706 was introduced at a regular
meeting of the City Council of the City of Rosemead held on the 14th day o LN92, and
was duly adopted by said City Council at their regular meeting held on thel1 th day of August,
1992, by the following vote:
YES: Bruesch, Taylor, Clark, Vasquez, McDonald
NO: None
ABSENT: None
ABSTAIN: None
• CITY CLERK
(Regulation of the Fair Political Practices Commission, Title 2,
Division 6 of the California Code of Regulations)
18730. Provisions of Conflict of Interest Codes
(a) Incorporation by reference of the terms of this
regulation along with the designation of employees and the
formulation of disclosure categories in the Appendix referred to
below constitute the adoption and promulgation of a conflict of
interest code within the meaning of Government Code Section 87300
or the amendment of a conflict of interest code within the meaning
of Government Code Section 87306 if the terms of this regulation
are substituted for terms of a conflict of interest code already
in effect. A code so amended or adopted and promulgated requires
the reporting of reportable items in a manner substantially
equivalent to the requirements of Article 2 of Chapter 7 of the
• Political Reform Act, Government Code Sections 81000, at sea. The
requirements of a conflict of interest code are in addition to
other requirements of the Political Reform Act, such as the
general prohibition against conflicts of interest contained in
Government Code Section 87100, and to other state or local laws
pertaining to conflicts of interest.
(b) The terms of a conflict of interest code amended or
adopted and promulgated pursuant to this regulation are as
is follows:
(1) 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 18100, et
seg.), and any amendments to the Act or regulations, are
1 18730
incorporated by reference into this conflict of interest
code.
(2) 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.
(3) Section 3. Disclosure Categories.
This Cc-ode 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, it seg.'
Such persons are covered by this code for
disqualification purposes only. With respect to all
other designated employees, the disclosure categories
• Designated employees who are required to file statements of
economic interests under any other agency's Cconflict of Iinterest
Ccode, 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.
2 18730
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
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.
(4) 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
(5) 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
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.
3
18730
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.
(5.5)
Section
5.5.
Statements for Persons Who Resign
30 Days
After
Appointment.
Persons who resign within 30 days of initial
appointment are not deemed to have assumed office or
.
left office
provided
they did not make
or participate in
the making
of, or use
their position to
influence any
decision and did not receive or become entitled to
receive any form of payment as a result of their
4 18730
appointment. Such persons shall not file either an
assuming or leaving office statement.
(6) 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
5 18730
period cbvered 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.
(7) 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) Investments and Real Property Disclosure.
When an investment or an interest in real property3
is required to be reported,4 the statement shall
contain the following:
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 teal 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.
6 18730
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 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,5 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
•
5 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.
7 18730
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.
(C) Business Entity Income Disclosure. When
income of a business entity, including income of a
• sole proprietorship, is required to be reported,6
the statement shall contain:
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 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.
8 18730
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.
9
18730
(8) Section 8. Disaualification.
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 one 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;
10
18730
(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
$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.
(8.3) Section 8.3. 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.
(8.5) Section 8.5. Disqualification of State
Officers and Employees.
In addition to the general disqualification
n
U
provisions of Section 8, 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
11
18730
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:
(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.
(9) Section 9. Manner o 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
12 18730
.
the case of other designated employees, this
determination and disclosure shall be made in writing to
the designated employee's supervisor.
(10) Section 10. 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.
(11) Section 11. 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 - 91014. 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.
Note: Authority cited: Section 83112, Government Code.
Reference: Sections 87300-87302, Government Code.
History:
(1) New section filed 4/2/80 as an emergency; effective
upon filing.
(2) Editorial correction
13 18730
(3)
Amendment
of subsection
(b) filed 1/9/81; effective
thirtieth
day thereafter
(4)
Amendment
of subsection
(b)(7)(B)1. filed 1/26/83;
effective
thirtieth day
thereafter
(5)
Amendment
of subsection
(b)(7)(A) filed 11/10/83;
effective
thirtieth day
thereafter
(6)
Amendment
filed 4/13/87;
operative 5/13/87
(7)
Amendment
of subsection
(b) filed 10/21/88;
operative
11/10/88
(8)
Amendment
filed 8/28/90;
operative 9/27/90.
C1
J
0
14
18730
•
U
CHA TER 2
DISC OSUR
Pur'ose I
for the disc\L
persons whic
official acti
to provide th
from acting i
be avoided.
2251.
i - CONFLICT OF INTEREST AND
MONITORING AGENCY CODE
is the purpose of this Code to provide
osure of assets and income of designated
may be materially affected by their
ns, and, in appropriate circumstances,
a designated persons should be disqualified
n order that conflicts of interest may
sure Statements.
(a) Each designat d person shall file statements, at
the time and in.th manner prescribed in this Code, dis-
closing reportable nterests in real property, invest-
ments in business en ities, income or sources of income
which might foreseea y be affected materially by any
decision made or part cipated in by him or her by
virtue of that person position.
(b) Whenever disclosur of investments or interests in
real property is require by this Code, the investments
and interests in real pr, erty of the filer's spouse
and dependent children sh 11 also be disclosed.
(c) Time of filing statem ts:
1. Designated persons sha11 file their initial
statements within 30 day after the effective date
of this Code. Thereafter any new designated persons
shall file their initial s atements within 30 days
after assuming office or b inning employment. An
initial statement filed pur uant to this subsection
shall include reportable in stments and interests
in real property, but not in ome.
2. Annual statements disclosing r portable investments,
interests in real property, in ome, and sources of
income shall be filed by all de ignated persons on
or before April 1st of each year covering the
period ending the previous Decem' r 31st.
-17-
2251. (d) L aving Office Statement: Every designated person
Cont'd who lea es office and does not assume another :esignated
position in the City of Rosemead shall file a atement
within 3 days after leaving office disclosing reportable
investments, interests in real property and income during
the period since the last statement was filed. A
designated erson who leaves a position and immediately
assumes anoer designated position shall file an
amended state.ent only if additional reporting is
required.
(e) Place of filing statements: The original shall
be filed with th City Clerk. For statements filed by
the City Manager, the agency shall make and retain a
copy and forward tie original to the City Clerk, who
shall receive it on, behalf of the City Council.
(f) Disclosure form§ will be supplied by the Agency.
4
(g) Effective date: \This Conflict of Interest Agency
Code shall become effective 30 days after the date of
approval by the City Co ncil of the City of Rosemead.
(h) Any person required co file a statement in sub-
stantially identical form with another jurisdiction
may file a copy of such st tement in lieu of the state-
ment required by the City oo Rosemead.
2252. Manner of Reporting.
(a) Contents of investment and~real property reports:
When an investment or interest in real property is
required to be disclosed under this Code, the statement
shall contain: \
LJ
i
1.
A statement
of the nature of the investm
ent or
interest;
2.
The name of
the business entity i
each
investment
is held, and a general
tion of
the busines
s activity in which th
ss entity
is engaged;
3.
The address
or other precise loca
\
the real
property;
4.
A statement
val
whether the fair mark
of the
investment
or interest in real pr
ticeeds
-18- .
2252. $1,000 or $10,000, or whether it exceeds $130,000.
Cont'd The individual need not report any investment in
hi~ or her personal residence.
5. In t e case of an investment which constitutes 50%
or m e of the ownership interest in a business entity,
disci sure of the investments and interests in real
proJer"- of the business entity.
(b) Conten s of income and gift reports: Income from
sources with n the City shall be reported. When income
is required t be reported under this Code, the statement
shall contain:
1. The name an address of each source of income for
the previous calendar year aggregated $250 or more
in value per ear, or $25 or more in value if the
income was a ift (whether from inside or outside
the City) and general description of the business
activity, if A, of the source;
2. A statement whet er the aggregate value of the
income from each ource c•7 as greater than $1,000 and
whether it was gre ter than $10,000;
• 3. A description of th consideration, if any, for
which the income was received;
4. In the case of a gift, the amount and the date on
which the gift was re- "ved.
income: Business
(c) Reports of business en\nh
entity income from sources the City shall be
reported. ?."hen income of a ess entity, including
income of a sole proprietoris required to be
reported under this Code, ttement shall contain:
1. The name and address aneral description of
the business activity ousiness entity;
2. In the case of a busineit which provides
legal or brokerage servth name of every
om whom the buen ity received
person fr
payments must be disclothe filer's pro rata
share of fees from such n was equal to or
greater than $1,000 dure rep sting period;
3. In the case of a businetity not covered by
-19-
{
2252, subparagraph 2. of this section,
Cont'd every person from whom the busine
payments must be disclosed if the
share\of gross receipts from such
to or greater than $10,000 during
the nueia of
ss entity received
filer's pro rata
person. :,-as equal
the reporting
A Income ofd a business entity shall not be reported
unless the filer or his spouse owns, directly,
indirectly,,or beneficially, a 10 percent interest
or greater.` In addition, for purposes of sub-
paragraphs \2. and 3. of this section, the dis-
closure of persons who are clients or customers of
a business enttity is required only if it is reasonably
foreseeable that the client or customer may be
materially affeFted by the decisions of the filer.
0
J
2253. Disqualification \ A designated person shall dis-
qualify himself or herself from making or participating
in the making of any decision when the employee has a
financial interest in the decision.
(a) Nothing contained here
of any designated person to
views on the same basis as
such is done in public and
clearly indicates he or she
capacity.
(b) Rule of Necessity: Secti`
prevent a designated person fr
in the making of a decision to
her participation is legally r
decision to be made. The fact
vote is needed to break a tie
participation legally required
section.
in shall abridge the right
submit information or ehpres:
\any other citizen, provided
provided that the person
\is acting in a private
n D of this Code does not
making or participating
he extent that his or
glired for the action or
that a designated person's
oes\ not make his or her
for\the purposes of this
2254. Manner of Disqualification. A designated person who is
a city employee required to disqualify\himself or her-
self shall notify his or her superviso in writing. This
notice shall be forwarded to the City M nager, who shall
record the employee's disqualification. The supervisor
shall immediately reassign the matter to nother
employee. If the City Clerk or City Trea urer is
required to disqualify himself or herself, he or she
shall immediately assign the matter to a pe son authorized
to act. A designated person who is a member of a city
-20-
2254. board ~or commission who is required to disqualify
Cont'd himsel or herself shall announce the disqualification
at the ~ime the matter is presented to the board or
commissi n.
2255. Citv Mana.,er. The provisions of the Political Reform
Act of Government Code Section 81000 et seq.,
the Regulations of the Fair Political Practices
Co-mission: ~d an'7 amendments to the Act and Regula-
tions Dertaining to the filing of a statement by the
City Manager sclosing investments, interests in real
property and Acome that are in conflict with this code
shall supersede this code.
2256. Definitions. Except as otherwise indicated below, the
definitions contained in the Political Reform Act of
1974, Government Co e Section 81000 et seq., the Regu-
lations of the Fair 0litical Practices Cor,*aission, and
any amendments to th Act and Regulations shall be
incorporated into thi Code.
(a) "Business Entity": Any organization or enterprise
operated for profit, inc uding but not limited to a
proprietorship, firm, business trust, joint venture,
syndicate, corporation or 1ssociation.
(b) "Designated Person": designated person is any
individual listed on AttachmNnt "A" hereto or as amended
from time to time. Such desi mated person shall be
required to comply with the re ort requirements of this
code.
(c) "Financial Interest" A des4 gnated person has a
"financial interest" in a decisio if it is reasonably
foreseeable that the decision will have a material
financial effect, distinguishable f om its effect on
the public generally or any signific nt seg-lent thereof,
on:
1. Any business entity in which the d ignate.d person
has a direct or indirect investment ~•'orth more than
• $1,000;
2. Any real property in which the desi0' ed person
has a direct or indirect interest worth more than
$1,000;
3. Any source of income, other than loans by a
-21-
2256. co mercial lending institution in the regular course
cont'd of usiness, aggregating $250.00 or more in value
received by or promised to the designated person
within twelve months prior to the time when the
decis'ion is made; or
4. Any b u4ness entity in which the designated person
is a di\ector, officer, partner, trustee, employee,
or holds any position of management;
define fin interest, means any investment or
5. "Indirect\'\theen ent or interest", as used to
interest o the spouse or dependent child of
the designrson, held or owned by an agent
on behalf designated person, held or owned
by any bustity controlled by the designated
person or ust in which the designated person
has a subsinterest. A business entity is
controlled esignated person if the designated
person, hiagents, spouse and dependent
children hthan 50 percent of the ownership
interest in ity. A designated person has a
substantiaes in a trust when the d esignated
person, his or her spouse, and dependent children,
have a present or fu$ure interest worth more than
$1,000.
(d) "Income".
1. "Income" means, except as provided in subsection 2. ,
income of any nature from any source, including but
not limited to any salary, wage, advance, payment,
dividend, interest, rent, capital gain, return of
capital, gift, including any gift of food or beverage,
loan, forgiveness or payment\of indebtedness, discount
in the price of anything of value unless the discount
is available to members of the public without regard
to official status, rebate, reimbursement for
expenses, per diem, or contribution to an insurance
or pension program paid by any person other than an
• employer, and including any community property
interest in income of a spouse. Income of an indi-
vidual also includes a pro rata share of any income
of any business entity or trust in which the indivi-
dual or spouse owns, directly, indirectly or bene-
ficially, a 10 percent interest or greater. "Income",
other than a gift, does not include i~ceme received
-22-
2256. \ from any source outside the jurisdiction ar.~_ not
Cont'd doing business within the jurisdiction, not planning
to do business within the jurisdiction, or not
\having done business within the jurisdiction during
the two years prior to the time any statement or
other action is required under this title.
2. "income does not include":
A. \Inco^e from a source 1•7hich is a former employer
if: \All income from the employer was received by
or accrued to the designated person prior to the
time he\or she became a designated person; the
income was received in the normal course of the
previous\employment; and there was no expectation
by the designated person at the time he or she
assumed a'designated position of renewed employment
with the former employer;
B. Camoaign\contributions required to be reported
under Chapter\4 of the Political Reform Act of 1974;
C. Salary and\ eimbursement for expenses or per diem
received from a state or local government agency and
reimbursement for\travel expenses and per diem
• received from a bona fide educational, academic or
charitable organization;
D. Gifts of inform \t.ional material, such as books,
pamphlets, reports, calendars or periodicals;
E. Gifts which are not\used and cahich, within 30
days after receipt, are eturned to the donor or
delivered to a charitable organization without being
claimed as a charitable contribution for tax
purposes;
F. Gifts from an individual `s spouse, child, parent,
grandparent, grandchild, brotf~er, sister, parent-in-
law, brother-in-law, sister-in- law, aunt, uncle or
first cousin or the spouse of ay such person; provided
• that a gift from any such person shall be considered
income if the donor is acting as n agent or inter-
mediary for any person not covere by this paragraph;
G. Any devise or inheritance;
H. Interest, dividends or premiums o a time or
demand deposit in a financial institution, shares
-23-
2256. in a credit union or any insurance policy, payments
Cont'd received under any insurance policy, or any bond
r other debt instrument issued by any government
government agency;
I. Dividends, interest or any other return on a
sec rity which is registered with the Securities &
Exch nge Commission of the United States Government.
i
(e) "Inte est in real n_roperty". Any leasehold,
beneficial r ownership interest or option to acquire
such an int est in real property within the jurisdiction
if the fair rket value of the interest is greater than
$1,000. Inte \e:t: in real property of an individual
include a pro tshare of interests in real property
of any busineentity or trust in which the individual
or spouse owns, ~irectly,""indirectly, or beneficially,
a 10 percent inte est or greater.
(f) "Investment": Any financial interest in or
security issued by business entity, including but
not limited to commo stock, preferred stock, rights,
warrants, options, de t instruments and any partnership
or other ownership int rest, if the business entity or
any parent, subsidiary r otherwise related 'business
entity has an interest i real property within the
jurisdiction, or does business or plans to do business
within the jurisdiction a any time during the two
years prior to the time an statement or other action is
required under this Code. o asset shall be deemed
an investment unless its fai market value exceeds $1,000.
"Investment" does not include a time or demand deposit
in a financial institution, sh res in a credit union,
any insurance policy, or any bo d or other debt instrument
issued by any government or gove ment agency. Investments
of an individual include a pro ra a share of investments
of any business entity or trust i which the individual
or spouse o ns, directly, indirect or beneficially,
a 10 percent interest or greater.
• (g) "Jurisdiction": The geographica area within the
City of Rosemead, except that real roperty shall be
deemed to be within the "jurisdictipon" f the City if
it is located within or not more than n miles outside
the boundaries of the City, or within tw miles of any
land owned or used by the City.
(h) "Flaking governmental decisions": A de ignated person
"makes a governmental decision" when he or s e, acting
within the authority of his or her office:
-24-
2256. 1. Notes on a matter;
Cont'd
2. Apuoints a person;
Obligates or commits the City of Rosemead to any
\ona of action;
4. into any contractual agreement on behalf
City.
(irial effect": The effect of a gove rnmental
decisioinancial interest of a designated person is
materia1. At the ime the designated person makes, or parti-
cipates making, the decision, in light of all the
circumsta Fn es and facts known at the time of the
decision, e or she knows or has reason to know that
the existen of the financial interest might
interfere wi his or her performance of duties in
an impartial nner; or
2. In the case of a business entity in which the
designated person has a direct or indirect invest-
ment worth more th n $1,000, or in the case of a
designated person w o is a director, officer,
of management in a bntity:
partner, trustee, em \theannualized r holds any position
A. ?;nether the effedecision will be to
increase or decrease gross revenue
of the business entipercent or more or the
annual net income of ness entity by .5
percent or more;
S. Uffiether the effect of the ~ecision will be to
increase or decrease the assets\or liabilities of
the business entity by $50,000 o, more, or by .5
percent of its current assets or iabilities,
whichever is less.
• 3. In the case of real property within he jurisdiction,
in which the designated person has a irect or in-
direct interest worth more than one th usand dollars
($1,000):
A. Whether the effect. of the decision .7i 2.
1 be to
increase the monthly income-producing pote tial of
the real property by $100 or more or by fiv percent,
-25-
2256.
Cont'd
whichever is less;
B. Whether the effect of the decision will be to
increase the fair market value of the real property
by $1,000 or more or by .5 percent, whichever is
greater.
4. In\the case of a source of income of a designated
Pe_ on:
A. 1ether the decision will affect the source of
incom in the manner prescribed in paragraph A.. above;
B. Whether the governmental decision will directly
affect t'I_,`e amount of income to be received by the
designat e person.
(j) "Participa\T-ing in the making of governmental decisions"
1. A designated erson "participates in the making of
a governmenta decision", except as provided in sub-
section 2.A, o this definition, when he or she,
acting within t e authority of his or her office:
A. Negotiates, wout significant substantive
review, with a go rnmental entity or private person
regarding the deci on; or
B. Advises or makes ecommendations to the decision-
maker, either directl or without significant inter-
vening substantive rev ew, by:
a. Conducting rese rch or malting any investi-
gation which requires? the exercise of judgment
on the part of the de\\\signated person, and the
purpose of which is toyinfluence the decision; or
•
b. Preparing or presenting any report, analysis,
or opinion, orally or in writing, which requires
the exercise of judgment \n, the part of the
designated person, and thurpose of which is
to influence the decision2. "Making" or "participating in they aking" of a
governmental decision shall not iXude:
A. Actions of designated person which are solely
ministerial, secretarial, manual or c erical;
-26-
2256. B. Appearances by a designated person as a
Cont'd member of the general public to represent himself
or herself on matters related solely to his or her
personal interests; or
Actions by a designated person relating to
c maensation or the terms or conditions of
e loyment.
Ord. 443 6-28-77
0
•
-27-
ATTACHMENT "A"
List of Positions Designated
To File Reports
Pursuant to this Code
Building Of'•icial
City Manager
Assistant City Manager
City Attorney
Assistant City Attorney
City Clerk
City Treasurer
Director of Finance
Traffic Engineer
City Engineer
Fire Chief (Local Representative)
_ Director of Parks and Recr ation
Parks Supervisor
Director of Planning
Planning Assistant
Police Chief (Captain-Temple City Sheriff's)
Members of:
Releeagi-on A l R ~
P'~ 1t
Traffic Commission
ti_• p
go
-28-