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26 <br /> <br />CHAPTER 4 – CONFLICTS, LIABILITY AND DECORUM <br /> <br />CONFLICT OF INTEREST <br />State laws attempt to eliminate any action by Councilmembers which may be a <br />conflict of interest. The purpose of such laws is to ensure that all actions are taken in <br />the public interest. Newly elected officials are required to file a Statement of <br />Economic Interest (Form 700) within 30 days of being sworn into office. After that, <br />elected officials are required to file the Form 700 annually. The Clerk’s office will notify <br />you of your filing requirements. <br /> <br />If a Councilmember believes a potential for conflict of interest exists, he or she is <br />encouraged to consult with the City Attorney for legal advice. Staff may also request <br />an opinion from the City Attorney regarding a member’s potential conflict, if <br />necessary. Conflict of interest laws can be complicated, and violations may result in <br />significant penalties so please be sure to consult with the City Attorney or private <br />counsel if there is ever a question of potential conflict. <br /> <br />Councilmembers who serve on various joint power agencies, county committees, <br />regional boards and standing committees should verify with each of those agencies to <br />determine their filing requirements. <br /> <br />POLITICAL REFORM ACT <br />The Political Reform Act prohibits public officials from making, participating in, or <br />attempting to use their official position to influence a governmental decision in which <br />they know, or have reason to know, that they have a financial interest. If a public <br />official has a conflict of interest, the official must disqualify him or herself from acting <br />on or participating in the decision. Government Code Section 87105 states that a <br />Council or committee member who has a conflict of interest must recuse him or herself <br />and leave the room unless the matter is on the Consent Calendar. A councilmember <br />must take the following steps after it is determined that a conflict of interest exists <br />under the Political Reform Act: <br /> <br />1. Publicly identify the financial interest. <br />2. Recuse yourself from both the discussion and the vote on the matter. <br />3. Leave the room until the matter has been completed. <br />Exceptions: <br />1. If the matter is on the consent calendar, you do not have to leave the room. <br />2. If you wish to speak during public comment, you may do so as a private citizen, but <br />this is the only time you may be in the room while the matter is considered. <br /> <br />The Fair Political Practices Commission (FPPC) has many useful regulations and <br />opinions on conflicts of interests that are useful in determining whether a particular