Statements of Economic Interests Form 700 Filing Officer Duties

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Statements of Economic Interests Form 700Filing
Officer Duties
Workshop for City Clerks, County Clerks and
Multi County Filing Officers
Presented By The Technical Assistance
Division Fair Political Practices
Commission (866) ASK-FPPC www.fppc.ca.gov
Please turn off cell phones
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Whats In Your Packet?

• Front Pocket
• Sample Gift Reports
• Gift Fact Sheet
• Notification Guidelines
• Sample Notification Letters
• Enforcement Referral Form
• FPPC Fine Policy
• Filing Officer Advice and Regulations List
• Evaluation Form

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What Else is in Your Packet?

• Back Pocket
• Copy of Todays Presentation
• Form 700
• Form 700 Reference Pamphlet
• Form With Errors
• Form 700 Request For Amendment
• Sample Form 700 Amendment Schedule

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Disclosure Requirements
(87200 Filers Broad policy/Decision makers)
(Designated Employee in conflict-of-interest
code) Limited Disclosure Investments and business
positions in, and sources of income, including
gifts, loans, and travel payments from, entities
that manufacture, sell, or provide computer
hardware, software or computer consulting
services of the type utilized by your agency

• Full Disclosure
• All interests in real property within the
  agencys jurisdiction or within two miles of its
  boundaries
• All investments, business positions, and sources
  of income, including gifts, loans, and travel
  payments

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City Filers

• 87200 Filers
• Mayor
• Council Members
• City Manager
• Chief Administrative Officer
• Planning Commissioners
• City Attorney
• City Treasurer
• Public Officials who Manage Public
  Investments (typically retirement and pension
  boards)
• Candidates for these offices

Designated Employees

• Broad policy/Decision makers
• Deputy Directors
• Assistant City Attorney
• Real Property Manager
• Police Chief
• Employee with limited decision-making
• Purchasing Agent
• Fleet Manager
• Data Processing Manager
• Information Systems Analyst

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County Filers

• 87200 Filers
• Members of Boards of Supervisors
• Chief Administrative Officer
• District Attorney
• Planning Commissioners
• County Counsel
• Treasurer
• Public Officials who Manage Public Investments
  (typically retirement and pension boards)
• Candidates for these offices

Designated Employees

• Broad policy/Decision makers
• Director of County Engineering
• Data Processing Manager
• Deputy County Counsel
• Employee with qualifying duties
• Chief Technology Officer
• Director of Parking Facilities

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Multi-County Filers
87200 Filers
Designated Employees

• Public Officials , Members of Boards and
  Commission and High-level employees who manage
  public investments
• Treasury Manager
• Director, Finance
• Retirement System Admin.
• 401(K)/457 Committee Members

• Broad policy/Decision makers
• General Counsel
• Director of Fiscal Services
• Financial System Analyst
• Employee with qualifying duties
• Insurance Director
• Security Operations Officer

Candidates for these offices
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Judicial Filers

• 87200 Filers
• Supreme Court Justices
• Appellate Court Justices
• Superior Court Judges
• Part-time Judges
• Retired Judges
• Court Commissioners
• Candidates for these offices

Designated Employees

• Broad policy/Decision makers
• Court Administrator
• Traffic Referee
• Public Information Officer
• Employee with qualifying duties
• Family Court Counselors
• Supervising Court Reporter
• Data Processing Manager

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Consultants as Designated Employees

• Consultants - Fast Facts
• Individual rather than firm files.
• Reg. 18701 defines consultants.
• Advice procedure- consultant must request
  determination from the local agency before
  requesting FPPC advice. (Reg. 18329.5)

Consultants should be designated in the
conflict-of-interest code.
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Review Exercise
Susan is a City Council Member and John is the
Director of Information Technology. Under Johns
disclosure category, he is only required to
disclose income from and investments in
technology companies. Who must disclose the
following?

• 10,000 stock in Microsoft
• 15,000 stock in Starbucks
• Two Kings tickets from a neighbor who works for
  UPS (Tickets valued at 200.)
• Two tickets to Jersey Boys, the theater
  performance, from Apple Computer (Tickets valued
  at 250.)
• A rental property located in the city and rented
  by a college student
• Spouses income from the school district

Both
Susan
Susan
Both
Susan
Neither
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New Boards and Commissions

• Members of newly created boards and commissions
  that are not solely advisory, must file Form 700
  disclosing all of their economic interests
  pending approval of the agencys
  conflict-of-interest code.

Environmental Review Commission
(Gov. Code Section 87302.6 Regulation 18754.)
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Whats New

• Positions Not Yet Covered by a Conflict-of-Interes
  t Code
• Code Filers
• (Regulation 18734, effective January 1, 2010)
•  
• Individuals hired for positions that
  make/participate in making governmental decisions
  must file Form 700 before positions are added to
  the agencys conflict-of-interest code.
•  
• Form 700s are filed under agencys broadest
  disclosure category until conflict-of-interest
  code is amended to include new positions.
•  
• Agency may provide more limited written
  disclosure.

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Expanded Statement

• A filer who holds a designated position with more
  than one agency may file an expanded statement.
  The official should
• Complete one expanded statement covering
  reportable interests for all jurisdictions/agencie
  s.
• File signed copies of the expanded statement with
  all filing officers/officials.

City of Citrus Heights
City Council Member
Sac. Co. Fair Housing Comm.
Commissioner
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Where to File
87200 Filers Firstwith you. Make a copy and
send the original to the FPPC.
Designated Employees
Generally, original is filed with and retained
by you.
Exception Statements for most public officials
who manage public investments are retained by
your agency.
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Filing Official or Filing Officer?

• If you are required to keep the original Form 700
  filings in your office, you are the filing
  officer.
• If you receive the original Form 700 from filers
  and are required to forward that original to the
  filing officer, you are the filing official.
• You may be both a filing official and a filing
  officer.

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Filing Officials (for 87200 filers)
Understanding Your Role

• Notify filers of their filing obligation and
  distribute statements.
• Date stamp statements.
• Keep a log of all current statements
• Make and retain a copy of statements.
• Forward the original to the filing officer.
• Act as liaison between filers and filing officer.

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Filing Officers (for designated employees)
Understanding Your Role

• Notify filers of their filing obligation and
  distribute statements.
• Keep a log of all current statements.
• Determine if statements are filed on time.
• Notify those who fail to file.
• Assess or waive fines.
• Review statements.
• Refer non-filers to enforcement authority.

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FPPC Filing Officer
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Sample Log

• Use your log to sort non-filers.
• May add a column for candidate statement.
• This log format is designed by calendar year.

2010
Non Filer
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Filing Deadlines Assuming/Leaving Office
Statements

• Due no later than 30 days after assuming or
  leaving the position.
• The assuming office date is either the date the
  official is sworn in or the date the official is
  authorized to serve, whichever is earlier.
• Elected officials assume on the date they are
  sworn in.
• The leaving office date is the date the official
  stops performing his or her official duties.

(See Regulation 18722.)
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Filing Deadlines - Exceptions
Assuming/Leaving Office Statements

• An official who completes a term of office
  specified in Section 87200 and within 45 days
  begins a term of the same or another office in
  the same jurisdiction (e.g., planning
  commissioner is elected to city council) is not
  required to file an assuming or a leaving office
  statement.
• A designated employee who is re-elected or
  re-appointed within 30 days is not required to
  file an assuming or a leaving office statement.
• An individual who changes designated positions
  within the same agency or whose disclosure
  category has changed is not required to file an
  assuming or a leaving office statement.

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Review Exercise
Assuming/Leaving Office Statements
30 day Examples

• John is elected on June 8, 2010. He was sworn in
  on July 15, 2010. He must file an assuming
  office statement by August 16, 2010.
• Rosemarie turned in her keys and left employment
  on August 30, 2010. Because she had vacation
  credit, her date of separation was January 2,
  2011. Since she stopped performing her duties on
  August 30, her leaving office statement was due
  by September 29, 2010.

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Filing Deadlines Annual Statement
2009

• 87200 Filers Due by April 1
• Designated Employees - File no later than the
  deadline specified in the conflict-of-interest
  code April 1st for most filers

Period covered is generally January 1 - December
31 of previous year
Exception
An individual who assumed office between October
1 and December 31, 2009, and filed an assuming
office statement, will file his or her first
annual statement in 2011, covering the period
beginning the day after he or she assumed office
through December 31, 2010.
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Leave of Absence
Filing obligation is determined on a
case-by-case basis.

• Disability Leave
• Parental Leave
• Military Leave

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Notification Guidelines

• Pre-Filing Notification
• Notice 30 days prior to deadline.
• Notice by e-mail, fax, mail, or in person.
• Form 700 is available online at www.fppc.ca.gov.
• Non-Filer Notification
• Send written notification to non-filers within
  30 or 120 days after deadline.
• Send a second notification within 30 or 60
  days after the date of the first non-filer
  notification.
• Agencies with 50 filers or less use fewer
  number of days.

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Notification Guidelines

• Enforcement Referral Mandated Duty
• Report non-filer after sending at least two
  written notices.
• Make referral within 30 or 45 days after the
  date the second notice is sent to a non-filer.
• Documentation
• Maintain a log of all non-filer notices provided.
• Include copies of letters and phone logs with
  referral to FPPC.

Sample notices are in your packets.
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Provide Your Filers With

• Form 700
• Reference Pamphlet
• Conflict-of-Interest Code/Disclosure
• Categories (designated employees only)
• Gift Fact Sheet

It is extremely important that your filers are
provided with their disclosure categories so they
are aware of the types of interests and
investments they are required to disclose.
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E-Mail Notification
Notification/reminders may be made by e-mail only
if

• Procedure is in place to confirm e-mail
  notifications are received
• E-mail notification confirmations are saved until
  statement is received and
• E-mail notification confirmations are archived
  for filers who are delinquent or for those who
  fail to file.

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FORM 700 PUBLIC ACCESS

• Form 700s are public documents. You must permit
  any member of the public to inspect and obtain a
  copy of any statement.
• A Public Records Request cannot be required from
  the requestor.
• Forms must be available for public inspection
  during the agencys regular business hours.
• No conditions may be placed on persons seeking
  access to the forms.
• No information or identification may be required
  from persons seeking access.
• Reproduction fees of no more than 10 cents per
  page may be charged. (5 retrieval fee for
  statements five or more years old.)

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Preservation of Statements

• Clear the Clutter
• Form 700
• Maintain original statements for seven years.
• Copies must be maintained for not less than four
  years.
• After two years on file, a statement may be put
  on a space saving device and originals may be
  discarded.
• Form 801
• Retain on website and paper for at least four
  years.
• Forms 802
• Retain on website for at least four years.
• Retain on paper for at least seven years.
• Form 803
• Retain on paper for at least seven years.

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Reviewing the Form 700

• FACIAL review is required for all statements
• Review for the following required information
• Name and address of filer
• Period covered
• Type of statement
• Summary completed and schedules attached
• Verification completed

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Reviewing the Form 700

• FULL review is required on 20 of all timely
  filed statements (at least one-half of which are
  selected at random). This includes reviewing
  information on all the attached schedules
• Compare with disclosure category
• You are not required to conduct an
• investigation

Remember Fully review all late statements.
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Take out Form 700 Quiz from your packet
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Cover Page
Cover Page
Dow
Debbie
530 555-1234
ddow_at_comcast.net
CA
98311
6500 A Street
Sunny Knoll
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Cover Page
City of Sunny Knoll
?
City Council Member
Northern CA Irrigation District
Board Member
Sunny Knoll
?
Yuba, Sutter, Plumas
?
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Cover Page
The form is not considered filed if it is not
signed.
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?
?
?
?
March 3, 2010
?
?
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Schedule A-1Investments Stocks, Bonds, and
Other Interests (ownership less than 10)

• Common Errors
• Fair market value not checked.
• Stock brokerage account reported instead of
  stocks itemized.
• Financial statements attached in lieu of
  schedules.
• Partnership reported on Schedule A-1, but income
  not reported on Schedule C.

• Common Reportable
• Common/Preferred stock

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Schedule A-1
Comcast
Dean Witter
Department Store
Stock
Communications
?
?
?
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Schedule A-2Investments, Income, and Assets of
Business Entities/Trusts (ownership is 10 or
greater)
Common Errors

• Fair market value not reported.
• Gross income received not reported.
• Failure to disclose clients/income of 10,000.
• Precise location of real property not reported.

• Common Reportable
• Filers, spouses, or registered domestic
  partners business
• Living trust holdings
• Real property
• Investments - stock

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Schedule A-2
Anderson Construction
4560 County Road 2, Sunny Knoll, CA
?
1221 Wrangler Road
?
Builders
Sunny Knoll, CA
?
?
Partner
?
Customers
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Schedule BInterests in Real Property

• Common Errors
• Precise location not reported.
• Sources of rental income not reported.
• If property disposed of during reporting period,
  failure to disclose income from the sale on
  Schedule C.

Common Reportable

• Rental property
• Vacant land/lot

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Schedule B
Hart Way
Sunny Knoll
?
?
?
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Schedule CIncome Business Positions
Common Errors
Common Reportable

• Spouses or registered domestic partners
  income (50)
• Proceeds from any sale, e.g., home or car

• Name of spouses or registered domestic partners
  employer not reported.
• Filers, spouses, or registered domestic
  partners business only reported on Schedule C,
  instead of Schedule A-2.
• Gross income not reported.

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Schedule C
Tina Clark
John Dow
7464 Silent Drive, Sunny Knoll
4100 Main Street, Sunny Knoll
Accountant
?
?
?
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Schedule C
Income - Loans
Loans made by a commercial lending institution in
the normal course of business are not reportable.
15 years
Dennis Hall
5
124 Hilltop Drive, Sunny Knoll
?
Attorney
?
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Schedule DIncome - Gifts

• Common Errors
• Value of gift not reported.
• Date gift received not reported.
• Description of gift not reported.
• The gift limit effective 1/1/2009 12/31/2010 is
  420. Gift(s) over 420 from one source received
  during 2009? If so, call FPPC for guidance.

Common Reportable

• Tickets to entertainment events
• Meals

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Schedule D
Sunny Knoll Real Estate Co.
RMHA
1859 F Street, Sunny Knoll, CA
312 5th St., Redding, CA
Real Estate Sales
Beauty Shop
10 15 09
100.00
Dinner
85.00
350.00
Painting
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Schedule EIncome Gifts, Travel Payments,
Advances Reimbursements
Common Errors

• Value of payment not reported.
• Date and description of travel not reported.
• Gift or income box not checked.

Generally, travel payments reported on Form 801
are not required to be reported on Form 700.
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Schedule E
Northern California Water Association
565 Spring Street
Sacramento, CA
Trade Association
250.00
Air transportation to attend a conference in
San Diego, CA
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Amendments

• Notify all persons who appear to have filed
  incomplete or incorrect statements.
• May be filed at any time.
• No fines for filing amendments.
• Use amendment forms provided on the FPPCs
  website.

Interactive Form Available
www.fppc.ca.gov
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Form 801 Gifts to An Agency Two key elements
1. The payment (or item) must provide a personal
benefit to a public official that would otherwise
result in a gift to the official (e.g. travel).
2. The payment (or item) may only be used for
official agency business and the recipient must
be determined by the agencyno earmarking.
If the purpose of the payment is solely personal
in nature, it is not a gift to the agency.
There are additional requirements that must be
met, as specified in Reg. 18944.2
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Form 802 Tickets or Passes to An Agency
Regulation 18944.1 addresses requirements related
to an agencys treatment of tickets for
entertainment events. The regulation sets out
rules and requires agencies to post the agencys
policy and the Form 802 on the agencys website.

Example A concert promoter provided 10 tickets
to the agency. No official was selected by the
promoter to attend. Following the agencys
written policy, the agency selected the
recipients and posted Form 802 on its website.
If attendees receive food and beverages at the
event, such gifts are often subject to
disclosure and limits.
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Form 803 Behested Payment Reports
WHATS NEW?
Form 803 is used by elected officers to disclose
payments made at their behest, principally for
legislative, governmental, or charitable
purposes.
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File the form with the agency within 30 days
following the date on which the payment(s) meets
or exceeds five thousand dollars (5,000) in the
aggregate from a single source in a calendar
year. Example Mayor Travers sends a mailer
soliciting funds for the Boys and Girls Club. An
insurance company provides 5,000. Mayor Travers
must file a report within 30 days of the 5,000
payment.
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