California Fair Political Practices Commission
Overview
Northern California Assessors' Association
:
Lynda Cassady, Division Chief
Technical Assistance Division
Note: The slides presented today
do not have the force of law.
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Presented August 2014
Objectives
Gain a basic understanding on the following topics:
• Role of the FPPC
• What to report on your Form 700
• Agency reports
• Revolving door rules
• Mass mailing restrictions
• Campaign rules
• Enforcement efforts
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FPPC Regulates
CAMPAIGN
REPORTING
INDEPENDENT
EXPENDITURE
ADS
SEI/FORM 700
CONFLICT OF
INTEREST
(Including G.C.
1090)
HONORARIA
REVOLVING
DOOR
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AGENCY GIFTS
TICKETS &
TRAVEL
STATE
LOBBYING
AGENCY‘S
MASS
MAILINGS
FPPC does not Regulate
BROWN ACT
USE OF GOVT
FUNDS
CONDUCT OF
ELECTIONS
QUALIFYING
FOR THE
BALLOT
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Political Reform Act of 1974
 Initiative measure passed by voters
 Created FPPC – five-member commission
 Purpose is to prevent corruption of public officials in the
governmental decision making process
 Disclosure reports promote transparency and
accountability so public has access to government
processes
 FPPC has a staff of around 65
 You can view Commission meetings on our website as
well as research advice letters and enforcement actions
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Statements of Economic Interests
Form 700
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Who Files Form 700?
Any officer, employee, member, or consultant of your
agency whose position is designated in your
agency’s conflict of interest code. These positions
are deemed to make or participate in making
government decisions.
• Conflict of interest code may limit disclosure
• Note: Most local officials are required to
complete an ethics training course. The
FPPC website has a link for a free online
course. (AB 1234)
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Before Getting Started- Know
Your Disclosure Categories
Designated Position
Assigned Disclosure Category
Assessor
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Appraiser
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I.T. Manager
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Category 1: Interests in real property, and all investments, business positions
in business entities, and income, including receipt of gifts, loans, and travel
payments.
Category 2: Investments, business positions in business entities, and income,
including receipt of gifts, loans, and travel payments, from sources of the type
that provides services, goods, products in the telecommunications and
information technology fields.
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Why No Full Disclosure For All
Staff?
An I.T. Manager would have to report stock in vendors other
than I.T. if he/she were assigned to a broad disclosure
category.
Tailor disclosure category assignment to match job duties
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Form 700 Resources
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Schedule A-1 & A-2 Investments
Stocks, Limited Partnerships, Trusts
Common Reportable Interests:
• Stocks
• Partnership interests
• Business entities (including independent
contracting or consulting businesses)
• Interests held in a trust, including businesses,
investments, and real property
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Schedule B – Interests in Real
Property
Non-reportable Interests:
Any personal residence not claimed as a business
deduction for tax purposes or rented out
Reportable Interests in your county:
• Rental property
• Leasehold interests
• Vacant land; timber land; agricultural land
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Schedule C – Income
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Non-reportable:
• Governmental Salary
Reportable:
Spouse salary (50%) from
non-governmental source
(report employer’s name)
• Interest income
Income from sale of home or car
• Stock dividends
Personal loans (non-family
members)
Schedule D – Gifts
Non-reportable Gifts:
• Gifts from family members
• Gifts returned unused within 30 days
• Gifts exchanged on birthday, holidays, or
similar occasions
Reportable gifts:
• Gifts from other sources such as meals,
tickets to sporting or entertainment events
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What is a “Gift”?
 Anything of value – meals, cup
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of coffee, tickets
Any payment providing a
personal benefit for which you
do not provide payment or
services of equal or greater
value.
$440 gift limit from a single
source in a calendar year
Check disclosure categories
Many exceptions
Tickets to Fundraising Events
 Not reportable or limited:
- Two admission tickets to 501(c)(3) fundraisers
(must be received from the organization)
- Two tickets to campaign fundraisers (must be
received from committee)
 Reportable and subject to gift limits:
- Tickets to 501(c)(3) and political events provided by
third party source
- Tickets benefiting other types of non-profits, such as
501(c)(4) or 501(c)(6)s
- Value: Pro-rata share of food and entertainment or
non-deductible portion of the ticket or admission.
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Example
The Assessor is invited to attend a police vs.
firefighters football game to benefit the local Boys
and Girls Club which is a 501(c)(3) organization.
The Boys and Girls Club provides two tickets to
the Assessor valued at $75 each. These tickets
are not reported as a gift.
(Reg. 18946.4)
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Gift Exceptions
 Informational material to assist in performing
official duties (i.e., admission to informational
conferences) Note: This exception does not
include meals, travel or lodging
 Home hospitality when host is present
 Pre-existing personal friendships – not subject
to limits or reportable if unrelated to position
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Schedule E –
Travel Payments
Reportable travel payments:
•Travel paid by third party unless reported on
Form 801
•Travel paid in connection with a speech
Travel may be subject to gift limits – check with
FPPC in advance.
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Travel
 Travel payments from your own
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agency and other governmental
agencies not reportable
Travel from 501(c)(3)s may be
reportable but not limited
Travel in connection with speeches
reportable but not limited
Third party travel for official agency
business may trigger Form 801
Other travel payments may be
reportable and subject to limits
Travel for Speeches
For formal substantive presentations or participation on panels on
public policy issues, the following are not subject to gift limits, but
must be reported:
 Transportation (airfare, mileage, cabs, etc.)
 Lodging (day before, day of speech, day after)
Travel that is not reportable:
 Transportation paid by a local, state, or federal government
 Meals in connection with speech and nominal items
Important: Receiving payments for
speeches is prohibited honoraria
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Travel Example
Assessor serves on the board of directors for the
International Association of Assessing Officers (IAAO).
The association pays for the travel expenses (airfare,
meals and lodging) so that he may participate at board
meetings.
 These payments are reportable as income, but not
subject to gift limits.
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Reporting Review Questions
Do you report the following:
 Spouse’s salary as a public school teacher?
 Rental condo in San Diego?
 Travel to a seminar in Washington, D.C. paid for by the
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Treasury Department?
Vanguard security fund similar to mutual fund?
Personal residence?
Name of source who purchased home/car?
Stock in Starbucks?
Your co-worker who bought lunch on your birthday?
Dinner provided by a sales representative?
Airline tickets to New York City provided by your college
roommate for a personal visit?
Agency Reports
When are they triggered?
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Agency Reports
 Gifts to an Agency
(Form 801)
Generally, travel payments
 Ceremonial Role Events
and Ticket/Admission
Distributions (Form 802)
Entertainment events &
ceremonial roles
 Behested Payments
(Form 803)
“Featured” elected officials:
$5,000 or more funding to
charities
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Agency Payment Reports
 Your Department is offered the use of a software
program on a trial basis. (Official agency use – no
personal benefit.)
 Form 801 is not triggered as there is no personal
benefit for department personnel.
 Agency is procuring a new software program.
Potential vendors offer to send an employee to NYC
to observe how it is used in another agency.
 Form 801/Form 700 reporting is required as there is
a personal benefit for department personnel.
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Sample
Form 801
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Ceremonial & Ticket Report
 Agencies must report tickets the agency either
distributes or uses for its staff
 Agencies must adopt a ticket policy that provides
the public purposes
 Common reportable tickets include:
 A fair board distributing tickets to the county fair
 An official receiving tickets for a ceremonial role at
an event
 Tickets to an event as a morale or recognition
reward
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Reporting on Form 802
An Appraiser is awarded the County’s Employee
of the Year Award, which includes two tickets to a
San Francisco 49ers game.
Since there is a benefit to the official, a Form 802 is
required.
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Sample
Form 802
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Behested Payment Report
 An elected official must complete Form 803 if the
official solicits funds of $5,000 or more for a
charitable or governmental purpose.
 Assessor signs a letter asking for donations to a
local charity and a donor donates $5,000 or more.
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Behested Payment Exceptions
• Listing in roster format if elected officer’s
name is not otherwise singled out
(signature, photo, personal reference)
• If elected officers make up a majority of
the roster, Form 803 may be triggered
• Seek FPPC advice – send sample
communication
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Sample
Form 803
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Because You're Elected…
Other Applicable Rules
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Mass Mailings with Public Funds
• More than 200 pieces
sent through mail
• No “featuring” (photos,
signatures, multipronouns of elected
officials)
• Permissible:
letterhead, rosters,
meeting
announcements,
emails, websites
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Revolving Door ProvisionsLeaving Government Work
Most FPPC advice in
writing
One year ban -
appearing before
former agency for
compensation to
influence
Ban on influencing
prospective employers
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Campaign Rules
• Return contributions within 60 days if you
do not have a person’s address,
occupation, and employer.
• Don’t accept cash/money orders of $100+
• Watch for signs of campaign money
laundering – employees being reimbursed
by employers.
• Report subvendors, not just your political
consultant’s fees.
• File campaign finance reports on time.
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Campaign Issues
• You may have a campaign report due
even if you run unopposed on a ballot.
• Most candidates must file the following
FPPC forms:
• Form 501 – before you raise $$
• Form 410 – to receive an FPPC ID #
• Form 497 – identifies donors of $1,000 or
more to your committee
• Form 460 – public disclosure report of all
money in/out of your campaign
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Enforcement History
Warning Letters Related to Assessors
 Campaign mailing did not include the
Assessor’s committee as the sender of the
mailing
 Campaign reports not filed on time
 Appraiser failed to file Form 700 when
leaving office
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When in Doubt…
If you have questions, research or ask!
www.fppc.ca.gov
•Toll Free Advice Line: 866-275-3772 (AM hours)
•Email advice: advice@fppc.ca.gov
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