Lucerne Valley USD | BB 9270 Board Bylaws
Conflict Of Interest Code
The Board of Education for the district hereby revises and adopts this Conflict of Interest Code as of the 2nd day of January, 2011.
A. Conflict of Interest and Prohibition Against Making, Participating in the Making or in Any Attempting To Use Official Position to Influence Decision
In accordance with Government Code 87100 and 2 CCR 18730, no employee or member of the Board of the district shall make, participate in making, or in any way attempt to use his/her official position to influence a decision of the district which he/she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the officer or employee or a member of his or her immediate family or on any of the following:
1. Any business entity in which the officer or employee has a direct or indirect investment worth $2,000 or more;
2. Any real property in which the officer or employee has a direct or indirect interest worth $2,000 or more;
3. Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating $500 or more in value provided to, received by or promised to the officer or employee within 12 months prior to the time when the decision is made;
4. Any business entity in which the officer or employee is a director, officer, partner, trustee, employee, or holds any position of management; or
5. Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $420 or more in value provided to, received by, or promised to the officer or employee within 12 months prior to the time when the decision is made.
B. Prohibition of Engaging in Incompatible Activities and Holding Incompatible Offices
1. Board members and employees shall not engage in any employment or activity which is inconsistent with, incompatible with, in conflict with, or inimical to the Board member's or employee's duties. (Government Code 1126.) As authorized by Government Code 1126, the employment of a designated employee by or other business relationships with a current vendor of the district is prohibited. No designated employee shall accept compensation from any vendor who has done business with the district within the last two years.
2. Board members and employees shall not simultaneously hold two public offices that are incompatible. Offices are incompatible when either of the offices may audit, overrule, remove members of, dismiss employees of, or exercise supervisory powers over the other office or body; there is a possibility of a significant clash of duties or loyalties between the offices; or public policy considerations make it improper for one person to hold both offices. (Government Code 1099)
Any designated employee who fails to disclose reportable investments, business positions, interests in real property and income as required by the Political Reform Act, or any officer or employee who shall make, participate in making, or in any way attempt to use his/her official position to influence a decision of the district in which he/she knows or has reason to know he/she has a financial interest shall be subject to discipline, including up to dismissal in accordance with the procedure articulated by Government Code 91003.5. Classified employees shall be subject to discipline under Education Code 45113. Certificated employees shall be subject to discipline under Education Code 44932 and 44933. In addition, state law provides for administrative, criminal and civil sanctions as discussed in paragraph H, section 11 below.
D. Annual In-Service
The district shall conduct annually an in-service for its officers and employees concerning the district's Conflict of Interest Code and the requirements included therein. This in-service shall cover (1) the reporting requirements contained in Form 700 entitled "Statement of Economic Interests", (2) conflicts of interest and the prohibitions of Government Code 87100 and (3) the code of conduct expected and required of all officers and employees, including but not limited to the acceptance and reporting of gifts, meals and gratuities.
E. Disclosure of Loans as Income
Designated employees and members of the Board of Education shall disclose reportable loans on Schedule D of Form 700. Income is defined in Government Code 82030 to include loans which aggregate $250 or more from a single source which is either located in the jurisdiction, is doing business in the jurisdiction, has done business within the jurisdiction during the previous two years or plans to do business in the jurisdiction of the district. All reportable loans received or outstanding during the reporting period must be disclosed. Loans are not required to be disclosed in the following circumstances:
1. Any loan from a commercial lending institution which is secured by the principal residence of the filer. Loans exceeding $10,000 from a commercial lending institution or loans from other sources exceeding $250 if not secured by the principal residence of the filer are reportable;
2. Loans from a commercial lending institution in the normal course of business which, in the aggregate, does not exceed $10,000 at any time during the reporting period;
3. Any indebtedness created as part of a retail installment or credit card transaction made in the creditor's regular course of business on terms available to the public without regard to the official status of the filer if the aggregate amount owed to the creditor does not exceed $10,000 at any time during the reporting period; or
4. Any loan from or payments received on a loan made to an individual's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, uncle, aunt, or first cousin, or the spouse of any such person, except that a loan or loan payment received from any such person is reportable if he or she is acting as an agent or intermediary for any person not covered by this provision.
F. Filing Deadline for Annual Statements of Economic Interests
Designated employees and members of the Board shall file annual Statements of Economic Interests with the district no later than April 1 of each year. Upon receipt of the Statements of the Superintendent and members of the Board, the district shall make and retain a copy and forward the original of these statements to the San Bernardino County Board of Supervisors. Statements for all other designated employees will be retained by the district.
For questions concerning the reporting requirements of the Political Reform Act, Appendix "A" attached hereto should first be consulted. Appendix "A" sets forth the positions of those persons which are required to report financial interests and the disclosure categories which apply to each designated position. Next, the Statement of Economic Interests Form 700 should be consulted. Form 700 includes all the schedules which may need to be completed depending upon the disclosure category or categories applicable to a designated employee as well as instructions on how to complete each schedule. All members of the Board and designated employees must complete the first page of Form 700 indicating the name of the position (including whether (i) the position is covered by a conflict of interest code and (ii) if the filing is an expanded statement), that the jurisdiction is San Bernardino County, the type of statement which is being submitted (i.e., assuming office, annual, leaving office, or initial statement), the schedules, if any, in which a reportable interest exists, and the certification of the filer that such information is true and correct.
For additional information on reporting requirements or information on conflicts of interest and prohibitions as discussed in paragraph A above, the Political Reform Act of 1974 commencing at Government Code 81000 and the Fair Political Practices Commission's implementing regulation found at 2 CCR 18730 (hereafter, the "regulation") should be consulted. The applicable provisions of 2 CCR 18730 are set forth below in paragraph H.
H. 2 CCR 18730: Provisions of Conflict of Interest Codes
1. Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix promulgation of a conflict of interest code with the meaning of Government Code 87300 or the amendment of a conflict of interest code within the meaning of Government Code 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Government Code 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code 87100, and to other state or local laws pertaining to conflicts of interest.
2. The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows:
Section 1. Definitions
The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 CCR 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this Conflict of Interest Code. Should any provision contained in this Board Bylaw be inconsistent or conflict with any provision of the Political Reform Act or regulations of the Fair Political Practices Commission, the provisions of the Political Reform Act or regulations shall govern.
Section 2. Designated Employees
The members of the Board and employees holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests.
Section 3. Public Official who Manage Public Investments
The members of the Board are considered "public officials who manage public investments" under Government Code 87200. Members of the Board must file Form 700 Statement of Economic Interests pursuant to the reporting requirements of Government Code 87200 through 87210 not under this conflict interest code. Members of the Board shall disclose their financial interests as described in the Form 700 Statement of Economic Interests and in the Appendix below.
Section 4. Public Officials who Manage Public Investments
(a) Initial Statements. All designated employees employed by the district on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment.
(b) Assuming Office Statements. All persons assuming designated positions or office shall file statements within 30 days after assuming the designated positions or office.
(c) Annual Statements. All designated employees and members of the Board shall file statements no later than April 1.
(d) Leaving Office Statements. All persons who leave designated positions or office shall file statements within 30 days.
Section 5. Statements for Persons Who Resign Prior to Assuming Office
Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he/she did not make or participate in the making of, or use his/her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his/her appointment. Such persons shall not file either an assuming or leaving office statement.
(a) Any person who resigns a position within 30 days of the date of a notice form the filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and
(2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he/she did not make, participate in the making, or use the position to influence any decision of the district or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position.
Section 6. Contents of and Period Covered by Periods of Economic Interest
(a) Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code.
(b) Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office and income received during the 12 months prior to the date of assuming office.
(c) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's or officer's first annual statement shall begin on the effective date of the Code or the date of assuming office whichever is later.
(d) Contents Of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office.
Section 7. Manner of Reporting
Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the district, and shall contain the following information:
(a) Investment and Real Property Disclosure. When an investment or an interest in real property is required to be reported, the statement shall contain the following:
(1) A statement of the nature of the investment or interest.
(2) The name of the business entity in which each investment is held, and a general description of the business activity in which the business is engaged.
(3) The address or other precise location of the real property.
(4) A statement whether the fair market value of the investment or interest in real property exceeds $2,000, exceeds $10,000, exceeds $100,000 or exceeds $1,000,000.
(b) Personal Income Disclosure. When personal income is required to be reported, the statement shall contain:
(1) The name and address of each source of income aggregating $500 or more in value, or $50 or more in value if the income was a gift, and a general description of the business activity, if any, of each source;
(2) A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was $1,000 or less, greater than $1,000, or greater than $10,000 or greater than $100,000;
(3) In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift, the amount of value of the gift, and the date on which the gift was received;
(c) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported, the statement shall contain:
(1) The name, address, and a general description of the business activity of the business entity;
(2) The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than $10,000.
(d) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he/she is a director, officer, partner, trustee, employee, or in which he/she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity.
(e) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal.
Section 8. Prohibition on Receipt of Honoraria
No member of the Board or any other individual specified in Government Code 87200 shall accept any honorarium (Government Code 89502 (a)). Additionally, no designated employee shall accept any honorarium from any source, if the employee would be required to report the receipt of income or gifts from that source on his/her statement of economic interests. Subdivisions (a), (b), and (c) of Government Code 89501 shall apply to the prohibitions of this section. This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code 89506.
Section 8.1. Prohibition on Receipt of Gifts Exceeding $420
No member of the Board or any other individual specified in Government Code 87200 shall accept gifts from any single source in any calendar year with a total value of more than $420. Additionally, no designated employee shall accept any gifts with a total value of more than $420 in a calendar year from any single source, if the employee would be required to report the receipt of income or gifts from that source on his/her statement of economic interests. Subdivisions (e), (f), and (g) of Government Code 89503 shall apply to the prohibitions in this section.
Section 9. Manner of Disqualification
When a member of the Board determines that he/she should not make a governmental decision because he/she has a disqualifying interest in it, the determination not to act must be accompanied by disclosure of the disqualifying interest. This determination and disclosure shall be made part of the minutes of the Board. In the case of the Superintendent, this determination and disclosure shall be made in writing to the Board; and in the case of other designated employees, this determination and disclosure shall be made in writing to the designated employee's supervisor.
Section 10. Legally Required Participation by Member of Board of Education or Designated Employee
No member of the Board or designated employee shall be prevented from making or participating in the making of any decision to the extent his/her participation is legally required for the decision to be made. The fact that the vote of a Board member or designated employee who is on a voting body is needed to break a tie does not make his/her participation legally required for purposes of this section.
Section 11. Assistance of the Commission and Counsel
Any designated employee who is unsure of his/her duties under this Code may request assistance from the Fair Political Practices Commission pursuant to Government Code 83114 or from the attorney for his/her district, provided that nothing in this section requires the attorney for the district to issue any formal or informal opinion.
Section 12. Violations
This Code has the force and effect of law. Designated employees violating any provision of this Code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code 81000 through 91014. In addition, a decision in relation to which a violation of the disqualification provisions of this Code or of Government Code 87100 or Government Code 87450 has occurred may be set aside as void pursuant to Government Code 91003.
I. Biennial Review of Conflict of Interest Code
The Board shall review its Conflict of Interest policies no later than July 1 of each even-numbered year. The Board shall send the code reviewing body its amended Conflict of Interest policies, or a statement that no amendment was necessary, no later than October 1, of the same year. (Government Code 87306.5)
1006 Qualifications for holding office
35107 School district employees
35233 Prohibitions applicable to members of governing boards
297.5 Rights, protections, and benefits of registered domestic partners
82011 Code reviewing body
87500 Statements of economic interests
CODE OF REGULATIONS, TITLE 2
18702.5 Public identification of a conflict of interest for Section 87200 filers
Klistoff v. Superior Court, (2007) 157 Cal.App.4th 469
Thorpe v. Long Beach Community College District, (2000) 83 Cal.App.4th 655
Kunec v. Brea Redevelopment Agency, (1997) 55 Cal.App.4th 511
ATTORNEY GENERAL OPINIONS
92 Ops.Cal.Atty.Gen. 26 (2009)
92 Ops.Cal.Atty.Gen. 19 (2009)
89 Ops.Cal.Atty.Gen. 217 (2006)
86 Ops.Cal.Atty.Gen. 138(2003)
85 Ops.Cal.Atty.Gen. 60 (2002)
82 Ops.Cal.Atty.Gen. 83 (1999)
81 Ops.Cal.Atty.Gen. 327 (1998)
80 Ops.Cal.Atty.Gen. 320 (1997)
69 Ops.Cal.Atty.Gen. 255 (1986)
68 Ops.Cal.Atty.Gen. 171 (1985)
65 Ops.Cal.Atty.Gen. 606 (1982)
63 Ops.Cal.Atty.Gen. 868 (1980)
Conflict of Interest: Overview of Key Issues for Governing Board Members, Fact Sheet, July 2010
FAIR POLITICAL PRACTICES COMMISSION PUBLICATIONS
Can I Vote? A Basic Overview of Public Officials' Obligations Under the Conflict-of-Interest Rules, 2005
INSTITUTE FOR LOCAL GOVERNMENT PUBLICATIONS
Understanding the Basics of Public Service Ethics: Personal Financial Gain Laws, 2009
Understanding the Basics of Public Service Ethics: Transparency Laws, 2009
Fair Political Practices Commission: http://www.fppc.ca.gov
Institute of Local Government: http://www.ca-ilg.org
Bylaw LUCERNE VALLEY UNIFIED SCHOOL DISTRICT
adopted: February 2, 2011 Lucerne Valley, California
Revised: August 15, 2012