California Code of Regulations › Title 10 - Investment › Chapter 6.7 - Conflict of Interest Code › Section 4200 - General Provisions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
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.