Political Reform Act

The Political Reform Act was enacted by the people of the State of California by an initiative, known as Proposition 9, in 1974. One of the Act’s main purposes is to prevent financial conflicts of interest on the part of public officials. Commission members are subject to the conflict of interest provisions of the law, which are designed to protect the public from biased decisions. More information is available in City ethics training and in the League of Cities publication “A Local Official’s Reference on Ethics Laws”.

City of Saratoga Conflict of Interest Code

As required by the Political Reform Act, the City has adopted its own Conflict of Interest Code describing the nature of interests that may create a conflict. Click here to download a copy.

Preventing Conflicts of Interest

The Political Reform Act requires every public official to disclose all financial interests, such as investments, interests in real estate (real property), or sources of income, which may possibly affect the official’s judgment. Disclosure is made on a form called a “Statement of Economic Interests” or Form 700.

Statements of Economic Interests are public records. Any member of the public must be permitted to inspect and copy any statement during normal business hours.

If a public official has a conflict of interest, the Political Reform Act may require the official to disqualify himself or herself from making or participating in a governmental decision, or using his or her official position to influence a governmental decision.

Conflict of Interest

In general, the Political Reform Act provides that a conflict of interest exists where:

• An official makes, participates in, or uses his or her official position to influence governmental decisions
• It is foreseeable that the decision will affect the official’s financial interest
• The effect of the decisions on the official’s financial interest will be material
• The effect of the decision on the official’s financial interest will be distinguishable from its effect on the public generally.

A conflict of interest may exists under other rules as well. Commissioners are encouraged to consult with the City Clerk whenever they believe they may have a conflict.

For more information, see the website of the Fair Political Practices Commission.

Dealing with a Conflict

If a Commission member has a conflict of interest, the Commissioner must not make or participate in making, or in any way attempt to use their official position to influence, a governmental decision relating to the matter in which the Commissioner, or a member of the Commissioner’s immediate family, possess a financial interest.

• The safest way to address a conflict of interest that arises in a public meeting is for the Commissioner to state the basis for the conflict of interest immediately after the Chair announces the item for consideration.
• The member must then refrain from participating in the deliberations, abstain from voting, and leave the room in which the meeting is being held.
• The minutes will reflect the Commissioner’s stated conflict and non-participation. Commissioners and other public officials are barred from attempting to influence government decisions in which they have conflict outside of public meetings as well. For example, a Commissioner with a conflict of interest may not discuss the matter creating the conflict with a member of the City staff, other Commissioners, or the City Council.

Penalties for violating the conflict of interest laws are serious and may include fines and a prohibition against serving in public office. Questions regarding a potential conflict of interest should be directed to the City Clerk.

The Fair Political Practice Commission’s website at www.fppc.ca.gov and the hotline number 1-866-ASK-FPPC (1-866-275-3772) are additional sources of information.

Form 700

Under the Political Reform Act, the Governor, members of the legislature, elected state and local officials, judges, courts of record, and all high-ranking state and local officials must file Statements of Economic Interests.

With the exception of the Youth Commission, all other members of City Commissions are required to complete a statement of economic interests. Each Commissioner must complete a statement of economic interest on forms prescribed by the Fair Political Practices Commission, and supplied by the City Clerk, at the following times:

• Assuming office statements must be filed within 30 days after assuming office.
• Annual statements must be filed no later than 5:00 p.m. on April 1 of each year. Such statements shall cover the period of the preceding calendar year.
• Leaving office statements must be filed within 30 days of leaving office.

Statements of Economic Interests (also referred to as Form 700) shall be filed with the City Clerk and kept available for public inspection. A penalty of $10 per day, up to a maximum of $100, may be imposed for late filings.

To download the Form 700, click here.