Chapter Four –Legal Matters (Cont.)
How does the Political Reform Act prevent Conflicts of Interest? 1) By Disclosure: The Political Reform Act requires every public official to disclose all financial interests, such as investments, interests in real estate (real property), or sources of income, which the official may possibly affect by the exercise of his or her official duties. “Gifts” as defined by the PRA that you receive or accept may also be subject to disclosure. Gifts aggregating $50 or more in a calendar year generally must be disclosed. No public official may accept gifts aggregating up to a certain amount in a calendar year from the same source, which is adjusted every two years. In addition, you may be subject to disqualification as a result of accepting gifts over that amount from the same source within the twelve-month period before the proposed decision. Disclosure is made on a form called a “Statement of Economic Interests Form (Form 700). The City of Irvine has adopted a Conflict-of-Interest Code which requires certain designated employees, consultants and members of specified City boards, commissions and committees who engage in governmental decisions to declare personal financial information by filing a Form 700. Form 700 must be filed upon assuming office and annually thereafter. Upon appointment, the City Clerk will provide each commission or committee member who is required to file Form 700 the necessary documents for filing. Form 700 filings are retained on file by the City Clerk, are deemed a public record, and will be available on the City’s website. 2) By Disqualification: If a public official has a conflict of interest, the Political Reform Act requires the official to disqualify himself/herself from making or participating in a governmental decision or using his or her official position to influence a governmental decision. How can a public official determine if he or she has a Conflict of Interest? Having a conflict of interest is not necessarily forbidden or illegal. It is the failure to disclose and/or the participation through voting or attempting to influence on issues where one has a conflict that contributes to the illegal action, subjecting the individual to possible criminal and civil penalties, and nullifying the action of the City. When a commission or committee member suspects that he or she may have a conflict of interest, the City Attorney may be consulted. The official may be referred to the FPPC for guidance or an opinion because the advice of the City Attorney cannot be relied on to excuse a violation of the PRA.
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