SR-14-C (4)
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Council Offlce QIIlcls
Council Meetlng o~ptember 10, 1985
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stlta Monica, Callfornia
14-~
SEP 1 0 1985
TO:
Mayor and Counell
FROM:
SUBJECT
Councll Member Davld G. Epstein
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Request for D1SCUS$lOn of Rent Control Conflict of
Interest Rule
It is requested that Councll dlSCUSS the proposed rent control conflict
of lnterest rule. Press reports indicate the Fair Political Practlces
CommiSSlon 1S considerlng a rule WhlCh would bar landlords and tenants in
offlce from voting on rent control related issues.
I ask that the Councll consider what, if any, posit1on to take regard1ng
this matter.
By copy of this memo to Clty Attorney Myers, I am asking for a brief staff
report at the Councll Meeting.
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SfP 1 0 1985
CA:RMM:lld032
CIty CouncIl MeetIng 9-10-85
Santa MonIca: CalIfornIa
STAFF REPORT
TO:
Mayor and CIty CouncIl
FROM:
CIty Attorney
SUBJECT:
Proposed FaIr PolItIcal PractIces CommISSIon
RegulatIon RegardIng DIsqualIfIcatIon of
PublIC OffICIals WIth Leasehold Interests
from DeCISIon-MakIng In SpeCIfIed Instances
INTRODUCTION
The FaIr PolItIcal PractIces CommISSIon
[ "FPPC') I S
conslderIna the adoptIon of a regulatIon InvolVIng publIC
offICIals WIth leasehold Interests
[landlords and tenants):
speCIfYIng SItuatIons In whIch they must dIsqualIfy themselves
from votIng.
Several Councllmembers have request~d that the
proposed FPPC regulatIon be placed on the September 10 CIty
CounCIl agenda.
In response to these requests the proposeo
FPPC regulation IS attached
[AlternatIves 1 and 21
and
presented for CIty CounCIl conSIderatIon along WIth ~hIS Staff
Report.
BACKGROUND
One of the maIn purposes of the FPPC's proposed
reVISIons or addltlons to Its conflIct of Interest regulations
IS
to
prOVIde
unIform.
ObJectIve
standards
for
dIsqualIficatIon WhICh can be applIed eaSIly and qUickly bV
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publIC offICIals. IncreaSIng numbers of conflIct of Interest
questIons have been posed by publIC offICIals who are eIther
t~nants or landlords. DeCISIons aOaut whether an offiCIal
should dIsqualify himself or herself have been made on a case
by case baSIS through application of a number of dIfferent
sectIons of the CalIfornIa AdminIstratIve Code and varIOUS
FPPC opInIons.
The FPPC IS conSiderIng adoptIon of eIther of two
alternatIve regulatIons.
AlternatIve Number 1
AlternatIve Number 1 would dIsqualIfy a pUOlIC offICIal
fCI~Y Councllmember or Rent Control Board memoer) who harl a
leasehold (tenancy or ownershIp) Interest In a property from
partICIpating
in any deCISIon regardIng that property If
eIther: (11 the deCiSion would change the permIs~Ible use of
the leased property and eIther the publIC offICIal has the
fIght to sublease that property or the publIC offICIal mI~nL
be lIkely to change hIS or her actual use of the property as a
result of a deCISIon; or (2) the deCISIon would result In a
change of the actual use of the leased property or of property
WIthIn a speCIfIed number of feet of the leased property (150:
300:
and 500 feet are
alternatlves belna conSIdered)
and It
also must be reasonably foreseeable that the changed use would
slgnlflcantly enhance or decrease the use or enJoyment of the
leased property; or
decrease the amount
( 3 )
the deCISIon would
Increase or
of rent owed on
a lease by a speCIfIed
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dollar amount (5250 or $500) or 5%, whIchever 15 great~1
durIng a 12 month perIod; or (41 the deCIsIon would result In
a change of the termInatIon date of the lease.
However, this regulatIon also contaIns a prOVISIon WhIch
allows an offIcIal not to dIsqualIfy hImself or h~rself
pursuant to the applIcatIon of any of those four crIterIa If
the effect of the decIsIon would not be dIstIngUIshable from
Its effect on the publIC generally.
Therefore, adoptIon of
thIS regulatIon would not cause eIther Councllmembers or Rent
Control
Board members to be orecluded from votlna on aeneral
POlICY Issues affectIng rent control.
AlternatIve Number 2
Alternative Number 2 IS more restrIctIve than the fIrst
alternatIve
It prOVIdes that no publIC offIcIal
shall
partIcIpate In
deCIsIon would
a governmental decISIon If eIther:
(1) the
change the legally oermlsslbl~ use of eIth~r
the
leased property QL property wIthIn
a speCIfIed number of
feet of the leased property: or (21 the decisIon conc~rns rent
control and would Increase or decrease the amount of rent for
the leased property by $250 or $500 or %5. whIchever IS
greater during a twelve month period: or (31 the decISIon
would result In a change of the termInatIon date of the lea5e
In other words, AlternatIve Number 2 addresses Itself to
permISSIble uses of both leased property and nearby leased
property, and does not concern Itself with actual changes of
use.
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Alternat.lve Number 2 contains the same exemptIon froffl
disqualIfication as to general POlICY Issues that IS contaIned
In AlternatIve Number 1.
FPPC Schedule for AdoptIon
The FPPC has scheduled a dISCUSSIon of 2 Cal. Adm
Code
Sectlon 18702.5
(the proposed regulatiOn!
on September 10.
1985. InformatIon about the schedulIng of future hearIngs on
thIS regulation WIll be forthcomlna after the Septemher 10
meetIng.
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CONTINUA rlON SHEET
FOR F1L1NG ADMINISTRAT1VE REGULATIONS
WITH THE SECRETARY OF STATE
(Pun..ont t., G.,....mm.nt Cod- S.ctlon 11380.11
Adopt 2 Cal. Adm. Code Section 18702.5:
(Alte.rnat~ve 11)
18702.5. ~easehold Interests - Disqualification
(a) Except as prov1ded in subsection (b), a public
official who has a leasehold interest in real property as
def1ned Ln Government Code Section 82033 shall not make,
participate 1n, or use h1S or her official posltion to influence
a governmental decision if any 9f the following is reasonably
foreseeable:
(1) The decision will change the legally
perm~ssable use of the leased property and e~ther:
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(A) The public official has a right to
sublease the property, or
(B) It is reasonably foreseeable that the
public official will change his or her actual use
of tne property as a result of the decision.
(2) The decision will result in a change Ln the
actual use of the leased property, or of property
Wl thin (150) (300) (500) feet of the leased property,
and it LS reasonably foreseeable tnat the changed use
wlll 51gnificantly enhance or decrease the use or
enjoyment of tne leased property.
7/10/85
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18702.5
TO, 4~OA 18-71 \
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CONTINUATION SHEET
FOR FILING ADMINISTRAT1VE RE GUlA TIONS
WITH TH E SECRETARY OF STATE
(Pursu..nt to Goyemment Code Sectl..n 11380.1)
(3) The dec~slon w1ll increase or decrease the
amount of rent owed on the lease by ($250) $500 or
5 percent, wnichever ~s greater, durlng any l2-month
per~od following the decision.
(4) The dec~sion will result in change 1n the
terminatlon date of the lease.
(b) Notw~thstandin9 subsection (a), an official does
not have to disqualify himself or herself from a governmental
declsion pursuant to thlS section if the effect of the decision
on the leased property will not be distinguishable from its
effect on the publ~c generally.
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(c) If an official has an investment in or is a
director, officer, partner, trustee, employee or holds a
position of management in a business entity, or has received
income from any person, and the business entity or person leases
or operates ~ts Dusiness on the leased property,
disqualification may be required from dec1sions affecting the
bus~ness ent~ty or person under other sections of 2 Ca1. Adm.
Code, D1vis1on 6, Chapter 7, even if disqualification lS not
required by this section.
AUTHORITY: Gov. Code Section 83112
REFERENCE: Gov. Code Section 87103
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18702.5
lTC', ..OCA 18.7T I
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CONTINUATION SHEET
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FOR FILING ADMINISTRATIVE REGULATIONS
WITH THE SECRETARY OF STATE
(Pur....IO.t fa Co...mm.nt c..d. S.~t'on 11380.1)
Adopt 2 Ca1. Adm. Code Section 18702.5:
(Alternatlve #2)
18702.5. Leasehold Interests - Dlsqualification
(a) Except as provided In subsection (b), a public
offlcial who has a leasehold interest in real property as
defined ln Government Code Sectlon 82033 shall not make,
participate 10, or use his or her official position to influence
a governmental decision lf any of the following is reasonably
foreseeable:
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(1) The declslon will change the legally
permissable use of the leased property or of property
wlthin (150) (300) (500) feet of the lea-sed property.
(2) The decision concerns rent control and will
increase or decrease the amount of rent for the leased
property by ($250) ($500) or 5 percent, whichever is
greater, durlng any l2-month period following the
decislon.
(3) The declsion will result in a change in the
termination date of the lease.
(b) Notwlthstandlng subsectlon (a), an officlal does
not have to disqualify h~mself or herself from a governmental
deC1Slon pursuant to thlS sectlon if the effect of the declsion
on the leased property wlll not be distinguishable from lts
effect on the pUOllC generally.
7/10/85
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18702.52
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STr' 400A 18-711
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CONTINUA TIOH SH EET
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FOR FILING ADMINISTRATIVE REGULATIONS
WITH THE SECRETARY OF STATE
(Pursuont to Go...m......t c..d. S.ction 11380.1)
(c) If an official has an investment in or is a
d1rector, officer, partner, trustee, employee or holds a
pos1tion of management 1n a business ent1ty, or has received
income from any person, and the business entity or person leases
or operates 1ts business on the leased property,
d1squalif1cation may be required from decisions affecting the
business entity or person under other sections of 2 Cal. Adm.
Code, D1vision 6, Chapter 7, even if disqualificat10n is not
required by this section.
AUTHORITY: Gov. Code Section 83112
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REFERENCE: Gov. Code Section 87103
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CITY OF SANTA MONICA
INTER-DEPARTMENT MEMORANDUM
DATE:
March 25, 1985
TO:
FIle
FROM:
CIty Clerk
SUBJECT:
Statement of Economic Interest -- Rent Control Board
CandIdates and OffIceholders
When the appOIntment of an InterIm Rent Control Board was
proposed at the AprIl 18, 1979 , CIty CouncIl meeting (mInutes
attached) the CouncIl took action to reqUIre all Rent Control
Board applIcants/candIdates to complete a Statement of Economic
Interest (Form 720) prepared by the State of CalIfornIa to
dIsclose theIr holdIngs accordIng to CIty Charter SectIon 1803(c)
(attached).
SInce the above date, there have been several changes by the
State 0 f Call forn 1 a regard lng the dIsclosure forms. Pr lor to
1981, Form 720 was fIled by certaIn offICIals as a CandIdate's
Statement and as an AssumIng OffIce Statement. Form 721 was used
by certain offICIals for fIlIng Annual Statements and LeaVIng
OffIce Statements. Form 730 was an optional form for CIty use If
they had a conflIct of Interest code.
In 1981, however, the State combIned Forms 720 and 721 and made
the use of Form 730 mandatory for all deSIgnated employees
(November 1980 bulletIn attached). Note: Form 730 was not to be
used by any offICials fIlIng, pursuant to Government Code SectIon
87200 (Counc Ilmembers, CIty Manager and Planning Comml sSlon) ,
(Section 87200 attached).
The CIty's ConflIct of Interest Code was adopted on May 28, 1980,
ResolutIon No. 6009(CC3), amended by ResolutIon No. 6978(CCS).
In that Code, Rent Control Board Members were lIsted as
deSIgnated employees and requIred to file Statements of EconomIC
Interest whIle serVIng on the Board. Because the prIor POlICY
was In effect, the Clerk's offIce contInued to reqUIre Rent
Control Board members to fIle Form 721 as a candIdate, and Form
730 when they assumed offIce, fIled an Annual Statement or flIed
a LeaVIng Office Statement. Even though the Rent Control Board
flIed a Form 121 as a candIdate, the forms were not requlred to
be forwarded to the Fair PolItical Practices Commlssion as were
the Form 721 for candidates for City CounCIl.
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Due to the InconsIstency of fIling two dIfferent forms by the
same Board members, ClarIce Johnsen, then a member of the CIty
Clerk's staff, called Helen ArrIola of the Falr PolItIcal
PractIces CommISSIon who confIrmed the Rent Control Board members
should use Form 730 both to fIle as a candIdate (because
dIsclosure IS requ Ired by the C 1 ty Char ter) and to flle an
Assumlng OffIce Statement, Annual Statement and LeavIng OffIce
Statement as a desIgnated employee under the CIty'S ConflIct of
Interest Code.
AMS:JJ
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CITY OF 51-\;\7":\ r.rOt\ICA
CITY COUNCIL PROCEEDI\GS
AprIl 18, 1979
An ad]our-ned neetlng of tYte Santa \!oPl.ca CIty Cour.CII !,'3S called to order
at S 3J P.\l. by Mayor Pleter van den Steenhoven who led the asse~blage In
the pledge of allegIance to the UnIted States of Anerica.
Roll Cdll: Present: Mayor Pleter van den Steenhoven
Mayor Pro Tempore ChrIstIne Reed
Councilmember John J. Ba~brick
Councilrnenber Ruth Yannatta Goldway
Counc1.1~ember William H. Jennings
Councilmenber Perry Scott
City Manager Charles K. McClain
City Attorney RIchard Knickerbocker
CIty Clerk Joyce SnIder
Absent.
Councilmember Donna O'BrIen Swink (exc~sed)
:Agenda Ite~ 1. WIth the consent of Council. ~aycr van den Steenhoven
,ordered that the requests of the CIty Manager and City Attorney for a~
:exec~tIve session to dISCUSS pendIng litIgation be contInued to the end of
:th e agenda.
I;~~nda I:e, 2. Presented at thIS tIne was the request of Yayor Fro
!T~~pore Re~d fOT dIScussIon of procedures for acce~tI~g appllCatlo~S to
'an l~terlm Rent Control Board. After diSCUSSIon, ~ayor Pro Te~pore Reed
~OVCG ~hat appllcatlo~S for Interl' Rent Contra] Bo~rd ~e,bers be ccceptec
un::l the close of bus~ness Thursday, AprIl 26, 1979, that appll~a~~o~s be
:dlstrlb~teQ to Councll~e~bers for reVIe~ on Aprll 27, 1979, that
'Cow:cll nor.ll:latlons be presented to the CIty Clerk by 12 -00 noor:., l'.'ecL"esdT",
I ~ J ~
~:ay 2, and that selectIon of fIve Interlm Rent Control Board rre9her~ ~~
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CounCIl Vote. uran1~ousl/ appr0~ec 6-0
Absent
Councllmenber SK1n\
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~Lter dISCU5S10~, Counc:lmember Yan~atta ~oved that the ten cand1dates fo~;
ln te r 1:-1 ReI'. t Con L 1'01 Board .~ho are in the fl e Ie aft er the In1 t 1al ballo t-
t1ng process at the CouncIl meet1ng of \Iay 8, 1979, be publ1cly inter-
VIewed at the neet1ng before the fInal votes are cast. Second by Councll-
0e~ber Sa~brlck ror purposes of dlScusslon. Fol1o~lng d1Scuss1on, Mayor i
van den Steenhoven noved a substitute motlon that the CIty Councll prepare'
questions to ask of all--Inter1m Rent Control Board applIcants, that the
(our.cll nomInate ten cand1dates at a meetlng to be held ~lay 3, 1979,
InterVIe\,' flve candidates at a meetIng to be held flay 4 and flve apphcants
at a neetlng on ~Iay 5, and select the flve-ne~ber Board at the Councll
~eetIng of May 8, 1979. Second by Councllmerober Bambrlck. WIth the
consent of the second, Hayor van den Steenhoven ~oved an amendment to
Drovlde that th~ Council conduct an initial ballot and intervlew ten
~lnallsts at a neetlng to be held at 7:00 P.M , May 3, 1979,
Councll Vote: Unanimously approved 6-0
Absent: Councllnember Swink.
[.!avor Pro Tempore Reed moved that the Cl tv Clerk be dIrected to use the
ex~s~lng ap?llcatlori ior~ fOr appointment~ ~o board and co~~:ssions and
the eXlstlng State of CalIfornia Forn 720 for reportIng of fInanCIal
lnterests and that the C1ty CounCIl supply qUest10ns for response
oy In tey 11-' Ren t CO~ tral Board appLIcants. Se cond or Coune i 1 "lenber Barbric~.
(ounc.ll Vote
U~anlmously approved 6-0
Absent
Cou~cllnenber S~lnk.
Agenda I~e~ 3. Presented at thIS tl~e foy conSideratIon and adoptlon was ,
an ordln~nce call1ng a SpeCIal Electlon for the purpose of electln2 a Rent
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SANTA MOKICA CHARTER
landlord may charge on any controlled rental
unit
(I) BaBe Rent Ceiling The ma.ltnnum al-
lowable rent estabhshed In Section 1804(bJ
SECTION 1802 Inteum Rent Control
Board No later than thIrty (301 days after the
adoption of thiS Article. the City CouncLl of the
City of Santa MODIca shall appomt a fIve-
member Intenm Rent Control Board No
person shall be appomted to the Intenm Rent
Controi Board unless he or she IS a duly
quahfled elector of the City of Santa Momca
The Interun Board shall exercise the follO",'lng
powers and dutIes until the Permanent Board
IS elected m accordance With the prO~'lSlons of
SectlOr. 1803(dl and assumes office
111 ReqUire regtstratlOn of all controlled
rental units under Section 1803(ql
(21 Seek cnrrunal penalties under SectIOn
1810
(3) Seek rnjUnctlve rehef under Section
1811
SECTION 1803 Permanent Rent Control
Board
la) CompoSitIon There shall be rn the City
of Santa ~lolUca a Rent Control Board The
Board shall ConSist of five elected Commls-
SlO'lerS The Boa~d shall elect annually as
charrperson one of Its members to serve III that
capaCIty
ibl Ehglblllty Duly quahfled electors of
the City of Santa Maruca are elIgible to serve
as CommissIOners of the Board
(c) Full DIsclosure of Holdmgs Cand1dates
for the poSItion of ComrmsslOner shall subffilt
a ~.enfIed statement hstmg all of their
mterests and dealmgs In real property. Includ-
mg but not hmlted to Its o...mershlP, sale or
management, durmg the pre\'lOUS three (3)
~.ears
- (dl Election of Commissioners Comrms-
S10ners shall be elected at general muruclpal
electIOns In the same manner as set forth In
Article XIV of the Santa Momca City charter,
except that the first CommiSSioners shall be
elected at a speCIal mumclpal electIOn held
"'o'1tl11n nmety {90) days of the adoptIon of tlus
Article The elected Commissioners shall take
office on the fust Tuesday followmg their
election
(e) Term of Office Commissioners shall be
eleCted to seTYe tenns of four years, begmlllng
on the first Tuesday followmg their electIon,
except that of the first five Commlsstoners
elected m accordance With Section 1803 (d).
the two CommiSSioners recelVmg the most
votes shall serve until April 15, 1985 and the
remammg three comnllSSloners shall serve
unhl Apnl 18, 1983. Comnnssloners shall
serve a mllXnnum of two full terms
(f] Powers and Duties The Board shall
have ,he followwg powers and duties
(11 Set the rent cellings for all controlled
rental UTIlts
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(2) ReqUIre reglstratlOn of all controlled
rental umts under SectIOn IS03(ql
(3) EstablIsh a base ceilIng on rents under
Sechon 18041bl
{41 To make adjustments m the rent cellmg
m accordance With SectIOn 1805
(51 Set rents at f8lT and eqUitable levels 10
order to achieve the mtent of thIS -\rtlcle
(61 Hire and pay necessary staff. mcludmg
heanng exammers and personnel to Issue
orders. rules and regulations. conduct hear-
Ings and charge fees as set forth below
(7) Make such studies, surveys and mvestl-
gatlOns. conduct such hearmgs, and obtam
such mformatlOn as 16 necessary to carrv out
Its powers and duties - -
[81 Report annually to the City CounCIl of
the City of Santa Montca on the status of
controlled rental housmg
(9) Remove rent controls under Section
1803( rl
(10) issue permits tor removai ot controlled
rental umts from rental housmg market under
Section 1803lti
(11) ~dmml9ter oaths and affmnatlOns and
subpoena witnesses
(]21 Estabhsh rules and regulatlo'ls for
deductmg penalties and settl-ng cl\ll c~alms
under SectIOn 1809
1131 Seek cruninal penaltIes under Section
1810
1141 Seek mJunctl~e rehef under Section
1811
(gl Rules and Regulations The Board shall
Issue and follow such rules and regulations,
mcludmg those which a"e contamed ill thiS
>\rtlcle, as WIll further the purposes of the
ll,rtlcle The Board shall pubhClze Its rules and
regulations pnor to promulgation In at least
one newspaper of general circulatIOn In the
Cltv of Santa MOnica The Board shall hold at
leaSt one (1) public heanng to conSIder the
Views of rnterested partIes prIOr to the
adopnon of general adjustments of the celllIlgs
for ma:l(Jwum allowable rents under SectIOn
1805, and any deCISIon to decontrol oy
re-lIDpose control for Em) class of rental umts
under Section 1803(r) All rules and regula-
tIons, mtemal staff memoranda, and "''Tltten
correspondence explamlng the decIsIons,
orders, and poliCies of the Board shall be kept
10 the Board's office and shall be available to
the publIc for mspectlOn and copymg The
Board shall publ.:clZe thIS ArtIcle so that all
residents of Santa MOfilca WIll have the
opportumty to become Informed about their
legal nghts and duties under rent control In
Santa ~IonlC8 The Board shall prepare a
brochure which fully deSCribes the legal rights
and dutl8s of landlords and tenants under rent
control m Santa Moruca The brochure Will be
available to the pubhc. and each tenant of a
controlled rental umt shall recel~'e 8 copy of
the brochure from hiS or her landlord
(hi Meetings The Board shall hold at least
forty-eight (481 regularly scheduled Meetmgs
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.:-- 8tate of CaliforIlia . EMBER 1980
(.~ Fair Political Practices CommissioIt
\ ~~ P.O BOX 807 . SACRAMENTO, 95804 ... 1100 K STREET BUILDING, SACRAMENTO, 95814
r.chnlcal Assutcnc. .. Ad ",In l:.trClflon .. Execvtlve/l.ga' ... EnForc:..ment ... Statement! of Economic 'ntere'lot
(916) 322..5662 3225660 3225901 322-<5.441 322-<5.4.u
INFORMATION~~ ~EWSLETTER TO CITY ATTORNEYS, COUNTY COUNSELS
AND OFFICERS RECEIVING STATEMENTS OF ECONOMIC I~TERESTS
?ROM: LEGAL DIVISION
It is t~Me once agaln to prepare for the March 1 and Aprll 1
deadl~nes for flllng annual State~ents of Ecop-omlC Interests.
ThlS newsletter contalns lnformation regardlng new legls1at:ve
changes ~n the Polltical Reform Act, changes ln regulatlons,
a reVlew of sowe baslc flllng requirements and other lnform8tlcn
of lnterest.
The last page of thlS newsletter 25 ~o be co~pletec, llstlng
the names of offlclals who flle orlglnal Sta~ements with the
Commlsslon, and must be malled back to the CorrmlSS1on Dr~or to
February I, 1981.
Please pass ~he In=or~atlon In thlS newsletter on to ~ne :~lers
lr. your area ~f you belleve ~t wo~ld be he:pf~l t~ then.
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STATE~mNTS OF ECONOMIC INTERESTS -
WHO FILES, WHAT FORM( WHERE AND h~E~
See attached calendar. Statements may be f~led anytlme between
January I, 1981, and the fil~ng deadllne. Please note that If
a flllng deadline falls on a weekend or hollday it is extended
to the next regular business day (2 Cal. Adm. Code Sectlon 18116).
YORM 720 COMBINED WITH F9R~_72~
Untll now, Clty councllmembers, county supervlsors, Judges,
planning commissioners, city managers and other offlcials who
are requlred to file Statements of Economic Interests pursuant
to Article 2 of the Political Reform Act, Government Code
Sections 87200, et se~., were requlred to flle a Form 720 as
a candidate or assumlng office Statement and a Form 721 as an
annual or 1eavlng office Statement. Starting January 1, 1981,
the Form 720 and the Form 721 will be comblned. and all State-
ments wlll be flIed on a Form 721. For candicate and assurn~ng
offlce Statements, filers wlll be 1nstructed to file only
Schedules A, Band_C.
FOill1 730 FOR DESIGNATED EMPLOYEES
Last year the Commission made the use of Form 730 mandatory
by designated employees of agencles for which the Commlss~on
lS the code reviewing body and optional for all other des~gnated
employees. However, in 1981, the use of Form 730 lS mandatory
for ALL deslgnated employees. Standardizlng the form allows
the Falr Polltlcal Practices Commiss~on to assume a greater
share of the responsiblllty for keeping the form up to date
and makes It much easier for us to provlde technlcal asslsta~ce
to local agencies with respect to the completlon and reVleW
of Statements.
Please remember that thlS form lS NOT to be used by such persons
as Judges, clty councilmembers, county supervlsors, distrlct
attorneys, planning commissioners, city managers, chief a~~ln-
lstratlve offlcers and others flllng pursuant to Government
Code Sect~on 87200.
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that the deelSlon ".n]} have a matenaI flllanCIal effect. dlstmgmshable from
Its effect on the publIc generally, on
(a\ Any busmess entlty m which the publIc official has a direct or
mdIfeet Investment \vorth more than one thousand dollars ($l,OOO)
(b) Any real property III whIch the publIc offlclal has a direct or
mdIrect mterest worth more than one thousand dollars (81,000)
(c) Any source of mcome, other than loans by a commercIallendmg
mstltutlOn m the regular course of busmess on terms avadable to the
pubhc without regard to offICIal status, aggregatmg two hundred fIfty
dollars ($250) or more In value prOVided to, receIved by or promIsed to
the pubhc offICIal wlthm 12 months pnor to the time when the declSlon
IS made
(d) Any busmess enhty III whIch the pubhc offIcIal IS a duector, oHi.-
cer, partner, trustef', employee, or holds any pos1t10n of management
For purposes of thiS sectIOn, mduect mvestment or mterest means any
mvestment or mterest owned by the spouse or dependent child of a publIc
ofhcUlI, by an agent on behalf of a pubhc offiCIal, or by a busmess entity
or trust in ",:hlch the offlclal, the offiCial's agents, spouse, and dependent
chlldren o\\'n dIrectly, mdlrectly, or beneflclally a lO-percent mterest or
greater
H,.tory Amended by Stet. 1979 Cn 686, effec,"ve )anw".y 1, 1980, omended by Stel" 1980 Cn 183,
effectove January 1. 1981
Article 2. Disclosure. 9 87200 - 87210
Apphcablhty
CandIdates
OffIclals-Elected, AppOInted and Hold Over
Officeholders, Annual Statements
Leavmg OffIce
Persons Completmg and Begmnmg Term of OffIce on the
Same Dav
~ 87206 Dlsclosur~ of Investment or Interest In Real Property
~ 872065 Interest lU Real Property, ExclUSIOn of Pnnclpal ReSI-
dence [Repealed}
Dlsclosure of Income
DIsclosure of Investments and Interests In Real Property,
IncorporatIon by Reference
Blank
Gifts Made Through Intermedlanes and Others-DISclo-
sure Reqmrements
87200. .\pplicabllity ThiS arhcle IS apphcable to elected state offI-
cers, Judges of courts of record, members of the Pubhc Chhtles Commls-
SlOn, members of the State Energy Resources ConservatIon and Develop-
ment CommISSIon, members of the FaIr PolItIcal PractIces CommiSSIOn,
members of the CalIforma Coastal CommiSSIOn, members of plannmg
commiSSIons, members of tbe board of SupervFors, dIstnct attorneys and
chIef admmlstrahve officers of counties, mayors, tv managers, chIef ad-
mIUlstrahve officers and members of CIt! ~ouncIls of CItIes, and to candl-
~ 87200
~ 87201
~ 87202
~ 87203
~ 87204
~ 87205
~ 87207
~ 87208
~ 87209
~ 87210
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dates for any of these offices at any electIOn
HlSlOry Amended by Stol> 1975, C~ 797, elfecl,ve September 16, 1975, Operative September 5,1975,
Slah 1976, Ch 129, effeclJve Moy 5,1976, Stal> 1978, Ch 537, effectrve Janucry 1, 1979, Slats 1979,
Ch 674. effecllve Jonuary 1, 1980, amended by SIal> 1983, Ch 214. effecllve Jcnuory 1, 1984
87201. CandIdates, Every candIdate for an offIce speCIfied m Sec-
tron 87200 shall fde no later than the final filmg date of a declaratIOn of
candIdacy, a statement dISclosmg hIS or her mvestments and hIS or her
mterests m real property
Such statement shall not be reqUIred If the candIdate has fIled, wIthm
60 days pnor to the filmg of hIS Or her declaratIOn of candIdacy, a state-
ment for the same JunsdlctIOn pursuant to SectIOn 87202 Or 87203
History Amended by Stots 1977, Ch 1193, effeC'lve Jonuary 1, 1978, amendod by SPots 1980, Ch
928. e/fecllve Januory 1. 1981
8i202. OffICIals - Elected, Appomted and Hold Over i a": Every
person \\.:ho IS elected to an offIce speCified m SectIOn 87200 shall. wlthm
30 days after assummg such offIce, fIle a statement dlsclosmg hIS mvest-
ments and hIS mterests m real property Every person who IS appomted
or nommated to an offIce speCIfied In SectIOn 87200 shall fIle such a state-
ment not more than 10 days after assummg office, prOVIded, however, that
a person appomted or nommated to such an offIce who IS Subject to
confIrmatIOn by the CommISSIOn on JudICIal A..pporntments or the State
Senate shall fIle such a statement no more than 10 days after the appomt-
ment Or nommatIOn
Such statement shall not be reqUIred If the person has fIled, wIthm 60
days pnor to hIS assummg office, a statement for the same JunsdlctIOn
pursuant to SectIOn 87201 Or 87203
(bj Every elected state offIcer who assumes offIce durmg the month
of December Or January shall fde a statement pursuant to SectIOn 87203
mstead of thiS sectIOn except that the penod covered for such a statement
shall begrn on the date the person fIled hIS declaratIon of candIdacy ThIS
subdIVISIon shall become effectIve on January 1, 1978
HIstory Amended by Stats 1977, en 1193, ..ftec',ve January 1, 1978, Slotl 1978, Ch 537,offechv..
January 1, 1979
87203. Offlceholders, Annual Statements. E\'ery person \vho holds
an offIce speCified In SectIOn 87200 shall, each year at a tIme speCifIed by
commISSIOn regulatIOns, fIle a statement dlSc!osmg hIS rnvestments, hIS
Interests rn real property and hIS rnCOme dunng the penod srnce the
prevIOUS statement frIed under thIS sectiOn Or SectIOn 87202 The state-
ment shall mclude any lllvestments and Interest m real property held at
any hme dunng the penod covered by the statement, whether or not they
are stIll held at the tIme of fllmg
HllPory Amended by Slats 1976, eh 1161, offecllve January I, 19n
8i204. LeaVIng Offlce. Every person who leaves an offIce speCIfIed
rn Sectron 8i200 shall, wlthm thIrty days after leavmg the office, fIle a
statement diSclosmg hIS II1vestrnents, hIS Interests rn real property, and hIS
mcome dunng the penod SInce the prevIOUS statement fIled under Sec.
tIOns 87202 or 87203 The statement shall mclude any Investments and
rnterests III real property held at any tIme dunng the penod covered by
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CITY OF SANTA MONICA
RECLlr€D
OFFICE Of THE
CITY CLERK
JoN ~ 5 3 18 " '79
SANTA ItfuHICA. CALIF.
INTER-DEPARTMENT MEMO
DATE:
May 1, 1979
TO:
FROM:
Joyce Snider, City Clerk
Stephen Shane Stark, Assistant City Attorney
SUBJECT: Financial Disclosure: Rent Control Board Applicants
You have asked whether the City Council may require
nominees for the permanent Rent Control Board to
disclose financial interests other than those in-
volving real property.
In our opinion, the City Council may authorize such
disclosure. Section 81013 of the Government Code,
which is part of the Political Reform Act, permits
local agencies to impose additional disclosure re-
quirements on candidates for local elections. Slnce
the Political Reform Act is to be liberally construed
and full disclosure of financial interests is certainly
in the best interest of the City, you are advised that
the City Council may require candidates for the Rent
Control Board to complete Form 720 in relatlon to
financial interests other than real property.
SSS:mc
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,PROVE~: 1. ~,
~~e. S\cuk-
RICkARD L. KNICKERBOCKER,
City Attorney
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DATE April 24, 1979
TO Clty Attorney
FROM Clty Clerk
SUBJECT: Request for Legal Opinion
At its meeting of April 18, 1979 the City Councll adopted a
motlon whlch requires appllcants to the interim Rent Control
Board to complete all aspects of a For~ 720, a Statement of
Economic Interests. There is no requirement under the rent
control charter amendment that financial interests other than
those involvlng real property be dlsclosed by nominees to the
permanent Rent Control Board. Under the foregoing conditions
I have no guidelines for asking nominees to ,the permanent Rent
Control Board to complete a Form 720 in relatlon to financial
interests other than real property,
Question: Can the City Council require nomlnees to the
permanent Rent Control Board to disclose flnancial
interests other than those involving real ,property?
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At the Council meeting of AprIl 18, during discussion of
Agenda Item 2 (procedures for accepting applications to
an interim Rent Control Board), the follOWIng motion was
made:
#
Councllmember Reed moved, with regard to the applIcatIon
process, we require all applicants for the pOSItIon to
fill out a Statement of Economic Interests Form 720 whIch
is a form prepared by the State of CalifornIa for those
who choose to run for elective office and at present the
members of the Planning Commission who have to fIll out to
say what our economic interests are. I propose thIS because
the individuals appOInted to this board will have some power
over the assets of other people In thIS community and I
believe that, that being the case, the people who choose'
to put their names forward should be willing to disclose
their own assets. It then pubs into the public realm all
of that InformatIon and removes the CounCIl from any ac-
cuastions made by one side or the other of prejudice or bias
in favor of people with or without assets. If The motion was
seconded and carried unanimously.
Later a motion by Councilmember Reed directed#the City Clerk
to use the existing applIcation form as the basic form for
applying for the Interim Rent Control Board and the Form 720
financial form- and the Council will supply the questions."
The motIon was seconded and carried unanimously.
Ann Shore
Assistant City Clerk
4/24/79
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