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CONFLICT OF INTEREST CODE AMENDMENT
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RECOMMENDATION
It is recommended that City Council adopt a resolution to amend the City’s Conflict of Interest Code.
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Summary
In preparation for the 2026 Biennial Review and amendment to the City’s Conflict of Interest Code as required by the Fair Political Practices Commission, changes have been made to the Disclosure Category Definitions. Disclosure Categories were updated to allow for specific filing requirements because the old categories were vague and difficult to assign. The amendments to the Conflict of Interest Code were made as indicated in Attachment A as strike-out text and red text. The Disclosure Categories have been reviewed and approved by the City Attorney.
DISCUSSION
Background
The Political Reform Act (Cal. Gov. Code § 87100, et seq.) (“the Act”) requires every city to adopt a Conflict of Interest Code that identifies designated officials and employees in the agency who must file a financial disclosure statement. This section of the Act was established to ensure that:
“No public official at any level of state or local government shall make, participate in making, or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest” (Cal. Gov. Code § 87100).
Government Code Section 87200 of the Act requires certain public officials, including City Mayors and Councilmembers, City Managers, City Attorneys, City Treasurers, and Planning Commissioners to file an annual statement fully disclosing economic interests. The Act specifically excludes designation of positions in conflict of interest codes that are covered under section 87200, and therefore, those positions are not included in this review. Statements completed by officials holding these positions are filed with the Fair Political Practices Commission (FPPC) through the City Clerk.
Present Situation
The Act requires agencies to amend their code "...when change is necessitated by changed circumstances, including the creation of new positions which must be designated..." (Cal. Gov. Code § 87306). In preparation for the biennial review, staff have determined that the Disclosure Categories be updated to allow for specific filing requirements. With the more specific categories proposed in these revisions, the disclosure requirements are more appropriate and more easily tailored to the positions. Once approved, the City Clerk’s Office will coordinate the biennial review of the Conflict of Interest Code for employees and commission members for Council consideration. The Council is required to approve by resolution the Conflict of Interest Code with modifications recommended by staff as noted in Attachment A.
FINANCIAL SUMMARY
There is no financial impact to the City as a result of these amendments.
Attachment A - Conflict of Interest Code Redlined