Cal. Code Regs. tit. 10 § 4200

Current through Register 2024 Notice Reg. No. 48, November 29, 2024

Section 4200 - General Provisions

CONFLICT OF INTEREST CODE FOR THE CALIFORNIA TRADE AND COMMERCE AGENCY

The Political Reform Act of 1974 (Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) which contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency's code. After public notice and hearing it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference into Section 4200 (a copy of section 18730 is attached hereto). Section 4200 and the attached Appendixes, designating officials and employees and establishing disclosure categories, shall constitute the conflict of interest code of the California Trade and Commerce Agency, "Agency".

Designated employees identified in Appendix A, shall file statements of economic interests with the Agency. Upon receipt of the statement of the Secretary of the Agency, "Secretary", the Agency shall make and retain a copy and forward the original of this statement to the Fair Political Practices Commission. Statements for all other designated employees will be retained by the Agency.

PROHIBITION ON HONORARIA

Board members and designated employees of the Agency are prohibited from accepting any honorarium from any source which the board member or employee would be required to report as a source of income, loans, or gifts on his or her statement of economic interests.

"Honorarium" means, except as provided below, any payment made in consideration for any speech given, article published, or attendance at any public or private conference, convention, meeting, social event, meal, or like gathering.

"Honorarium" does not include earned income for personal services which are customarily provided in connection with the practice of a bona fide business, trade, or profession, such as teaching, practicing law, medicine, insurance, real estate, banking, or building contracting, unless the sole or predominant activity of the business, trade, or profession is making speeches. Honorarium also does not include income for personal services which are unconnected to the scope of the work of the employee's employment with the Agency.

LIMIT ON GIFTS

Board members and designated employees of the Agency are prohibited from receiving gifts with a total value of more than the amount specified in 2 California Code of Regulations, Section 18730 from any single source which the board member or designated employee is required to report as a source of income, loans, or gifts on his or her statement of economic interests.

The limit on gifts specified in 2 California Code of Regulations, Section 18730 does not apply to the following:

(1) Payments, advances, or reimbursements for travel and related lodging and subsistence permitted by Government Code Section 89506;

(2) Wedding gifts and gifts exchanged between individuals on birthdays, holidays, and other similar occasions, provided that the gifts exchanged are not substantially disproportionate in value; and

(3) The general exceptions provided in Government Code Section 82028(b) and Title 10, Chapter 7, Article 8 of California Code of Regulations.

Appendix--A

Designated Employees

It has been determined that the following positions have responsibilities for the making of decisions or for participating in the making of decisions which may have a foreseeable, material effect on financial interests. The designated employees shall disclose in their statement of economic interest those financial interests which are of the kind described in the disclosure category to which they are assigned in Appendix B.

Designated Positions:

1. All classifications at or above the level of Undersecretary (disclosure categories I, II, and III).

2. All career executive assignment classifications (disclosure categories I, II, and III).

3. All exempt appointees (disclosure categories I, II, and III).

4. All legal classifications (disclosure categories I, II, and III).

5. All administrative classifications at or above the associate level including fiscal, management, information technology (disclosure categories I and II).

6. All Business Service Office classifications at or above the level of Business Service Officer II (disclosure categories I and II).

7. All non-administrative classifications at or above associate the level including Staff Services, Tourism Specialist, Development Specialist, Information Officer, Loan Officer, Research Analyst, Research Program Specialist, and Motion Picture Production Analyst (disclosure categories I, II, and III).

8. All consultants. As used in this section, a "consultant" is a natural person who provides, under contract, information, advice, recommendation or counsel to the Agency. If the Agency hires an entity to do consulting work, the natural person(s) selected by the entity to provide the consulting services shall be covered by this section. The term consultant does not include a person who:

1) conducts research and arrives at conclusions with respect to his or her rendition of information, advice, recommendation or counsel independent of the control and direction of the Agency or any Agency official, other than normal contract monitoring; and

2) possesses no authority with respect to any Agency decision beyond the rendition of information, advice, recommendation or counsel (disclosure categories I, II, and III).

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 Secretary, or his or her designee(s), may determine in writing that a particular consultant 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 in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The Secretary'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.

Appendix--B

Disclosure Categories

Category I: Individuals assigned to this category shall disclose all investments and business positions in business entities, interests in real property, and sources of income as well as business positions in and income from nonprofit organizations of the type which may be recipients of contracts, grants, loans, or loan guarantees from the California Trade and Commerce Agency.

Category II: Individuals assigned to this category shall disclose all investments and business position in, and income from any business entity of the type to contract with the California Trade and Commerce Agency to provide equipment, supplies, or services or to receive services, grants, loans or loan guarantees, or participate in any of the programs administered by the Agency.

Category III: Individuals assigned to this category shall disclose all investments and business positions in, and income from, any business entity of the type to participate in any of the programs administered by the California Trade and Commerce Agency or which engages in real estate transactions (including all interest in real property zoned commercial or industrial), construction development, investment brokering, or similar activities.

Cal. Code Regs. Tit. 10, § 4200

1. New section and Appendix filed 5-4-92; operative 6-3-92. Approved by Fair Political Practices Commission 3-9-92 (Register 92, No. 20).
2. Editorial correction inserting chapter heading (Register 92, No. 28).
3. Change without regulatory effect amending section filed 2-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 6).
4. Amendment of section and repealer and new Appendices A and B filed 12-11-2000; operative 1-10-2001. Approved by Fair Political Practices Commission 9-29-2000 (Register 2000, No. 50).