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