Adoptions and Substantive Code Amendments. Any state agency or any local agency
with jurisdiction in more than one county, other than judicial branch agencies,
adopting or substantively amending a conflict of interest code must:
Drafting Requirements. Prepare a draft
code or code amendment with all required provisions as specified in Section
87302. An agency may fulfill these requirements by preparing a draft code or
code amendment that meets all of the following criteria:
(A) References the Act and incorporates by
reference the terms of a standard conflict of interest code provided in
the location for filing statements of economic interests and states that the
statements are available for public inspection and reproduction.
(C) Lists each designated position and its
assigned disclosure category. The agency must designate each position that
makes or participates in making a governmental decision as defined in
Regulation 18704(a) and (b).
Lists each disclosure category identifying the types of interests disclosable
for each designated position assigned to the category. The disclosure category
assigned to any designated position should include only those interests that
the designated position may foreseeably affect in making or participating in
making decisions within the scope of the position's assigned duties.
(2) Preliminary Review. Any agency
proposing a code or code amendment should, but is not required to, seek the
preliminary review of the draft by Commission staff prior to preparing notice
of the proposed code or code amendment and establishing a 45-day public comment
period. During preliminary review, Commission staff can assist the agency in
identifying designated positions, tailoring disclosure categories, and
answering questions regarding the agency's notice. Preliminary review may
expedite the Commission's final approval and allows the Commission to notice
the Commission's consideration of the code or code amendment simultaneously
with the agency's notice. When submitting a draft code or code amendment for
preliminary review, the agency should include job descriptions or duty
statements for all positions newly designated and for any position affected by
a change in disclosure categories.
Public Notice and Comment Period. Prepare
a notice of the proposed code or code amendment and establish a 45-day public
The notice of the proposed
code or code amendment must:
(i) Be made
publically available prior to the comment period such as by posting the notice
on the agency's website.
Describe the proposed code or amendment in general terms and, if amending an
existing code, include a summary of effects on the provisions of the existing
code, if any.
(iii) State that
copies of the proposed code or amendment are available to interested persons
and indicate where the copies may be obtained.
(iv) Specify the location where written
comments concerning the proposed code or amendment may be submitted and the
date by which written comments must be received to be considered by the agency
before it adopts or amends the code.
(v) State the time and place of any public
hearing that is scheduled on the proposed code or amendment, or if a public
hearing is not scheduled, include a statement that any interested person may
request, no later than 15 days prior to the close of the written comment
period, a public hearing.
State the name and telephone number of an agency officer to whom inquiries
concerning the proposed code or amendment may be directed.
For any state agency subject to the
Administrative Procedure Act, the notice must also comply with the
Administrative Procedure Act as required by Section 87311. In addition to the
requirements above, the notice must:
that the agency has prepared a written explanation of the reasons for the any
new or amended designated positions or disclosure categories.
(ii) Reference Section 87300 as authority for
the adoption of the code or Section 87306 as authority for the amendment of the
(iii) Include a statement
that the adoption of the code or code amendment will not impose a cost or
savings on any state agency, or school district that is required to be
reimbursed under part 7 (commencing with Section 17500 ) of Division 4 of the
Government Code; will not result in any nondiscretionary cost or savings to
local agencies; will not result in any cost or savings in federal funding to
the state; will not impose a mandate on local agencies or school districts; and
will not have any potential cost impact on private persons of businesses
including small businesses.
Include a statement that the agency must determine that no alternatives
considered by the agency would be more effective in carrying out the purpose
for which the action is proposed or would be as effective and less burdensome
to affected private persons than the proposed action.
(v) Be filed with the Office of
Administrative Law in sufficient time for publication in the California Notice
Register prior to the 45-day comment period.
(4) Intra-agency Notice. The agency must
provide intra-agency notice to each employee affected by the proposed code or
code amendment no later than the commencement of the 45-day comment period by
providing a copy or electronic copy of the notice to the each affected employee
or posting the notice on the agency's intranet or an employee bulletin
(5) Public Hearing. The
agency must conduct a public hearing, if requested by any interested person at
least 15 days prior to the close of the 45-day public comment period. To the
extent practical, the agency must mail notice of the time, place, and date of
the public hearing to each person who has filed a request for notice with the
Permissible Changes to
Draft. Any changes to the draft code or code amendment that was made available
to the public for comment can be adopted or amended without further notice if:
(A) The change is non-substantial or solely
grammatical in nature.
agency is not a state agency subject to the Administrative Procedure Act and
the change is substantially similar to the originally proposed code or
amendment that the public and employees affected had adequate notice that the
change was within the scope of the original proposal.
(C) The agency is a state agency subject to
the Administrative Procedure Act and the change is sufficiently related to the
originally proposed code or amendment that the public and employees affected
had adequate notice that the change was within the scope of the original
proposal and the full text of the changed code or amendment has been available
to the public for at least 15 days prior to the date the agency adopts the code
Approval. An agency may approve the code or code amendment by an action of the
agency's governing board or body, president, chair, chief executive officer, or
chief legal counsel. Upon agency approval after the notice and public comment
period, the proposed code or amendment must be submitted to the Commission for
approval under subdivision (c).
Non-Substantive Code Amendments.
Subdivision (a) is not applicable to non-substantive code amendments.
Non-substantive amendments are limited to
(A) The reclassification or
renaming of previously designated positions.
(B) The deletion of abolished
(C) The modification of
a code provision that does not alter disclosure or disqualification for any
Upon agency approval, a non-substantive amendment must be submitted to the
Commission for approval pursuant to subdivision (c).
Commission Approval. A proposed code or
code amendment must be submitted to the Commission for approval in
for a proposed code or code amendment must include:
(A) A declaration of the agency's president,
chair, chief executive officer, or chief legal counsel stating that the code
specifically enumerates each of the positions within the agency that make or
participate in making governmental decisions, which may foreseeably have a
material financial effect on any financial interest, and the agency has
satisfied the requirements of this regulation.
(B) A copy of the notice of proposed code or
code amendment if required under subdivision (a).
(C) A summary of any changes to the code from
that originally made available to the public for any adoption or substantive
code amendment, or a summary of any changes made to the last adopted code for
any non-substantive code amendment.
If requested, an agency must provide
additional documents necessary to approve the code such as:
(A) A summary of any hearing held by the
agency and written explanation of any areas of controversy and how they were
(B) Copies of all written
comments made to the agency regarding the proposed code or code
(C) A written
explanation of the reasons for the designations and the disclosure
responsibilities of officers, employees, members, or consultants of the
(D) The most current
organizational chart of the agency.
(E) Job descriptions or duty statements for
all designated employees.
copy of the statutory authority under which the agency was created.
(G) A copy of the last annual or similar
report prepared by the agency.
Copies of recent minutes of agency meetings.
(I) A description of the duties and the terms
of any consultant working for the agency who is not a designated
authority to review and approve the proposed code or code amendment as required
by Section 87303 is delegated to the Commission's Executive Director, or the
Executive Director's designee, and must be conducted in accordance with Section
87311. Any agency that objects to recommendations for revisions may request a
full hearing by the Commission at which the Commission will consider all
relevant matter presented to it prior to and during the hearing and will review
the code as required by Section 87303.
(d) Effective Date. For state agencies
subject to the Administrative Procedure Act, codes or code amendments, as
approved by the Commission, must be transmitted by the agencies to the Office
of Administrative Law within 30 days of Commission approval and will become
effective on the thirtieth day following the date of filing with the Secretary
of State. For agencies not subject to the Administrative Procedure Act, codes
or code amendments, as approved by the Commission, will become effective on the
thirtieth day following the date of approval.
(e) Public Access. Each agency must maintain
a copy of its code, which may be maintained on the agency's website, and must
make the code available for public inspection and reproduction during regular
business hours commencing the effective date of the code. An agency may not
impose any conditions upon persons desiring to inspect the conflict of interest
code of the agency and may not require the requestor's identification. Copies
must be provided at a charge not exceeding ten cents per page.