presented by

Gayle Garbolino-MojicaCounty Superintendent of

SchoolsFebruary 1, 2010

Reporting Gifts and Other ItemsForm 700

Disclosure Rules

Under The

Political Reform Act

Basic RuleWhat Economic Interests Must be Disclosed

Investments

Investments in a business entity or trust (including real property)

Interests in real property

Personal income including gifts, loans, and travel payments and reimbursements

Business income

Business positions

Form 700 – Statement of Economic InterestsThe FPPC has developed six schedules for use by public officials to disclose assets and income which may be materially affected by their official actions. The schedules capture the previous twelve months of activity whether the official is currently in office or is assuming or leaving office. These schedules are only filled out if the official has a “reportable” interest.

Schedule A – 1 Investments When OwnershipIs Less Than 10%

Financial interest in any business entity that is doing planning, planning to do, or has done business in the jurisdiction in the past two years.

Investments held by the Official, spouse, or dependent children

Stocks disclosed, but not diversified mutual funds registered with the SEC

Fair market value at $2,000 or more must be disclosed. The highest value of the investment during the reporting period is disclosed.

Schedule A – 1 Investments When OwnershipIs Less Than 10% (continued)

Official, spouse and/or dependent children combined ownership interest must be at least 10% and have a fair market value of $2,000 or more.

Business is or plans to be or has been located in jurisdiction within the past 2 years.

Must report gross income received from the entity by the official, (direct or community property share) and immediate family.

Schedule A – 2Investments, Income and Assets

Must report any “commission” income received from a single source greater than $10,000 (stock broker, insurance and real estate agent).

Must report any investment or real property interest held by the business entity worth $2,000 or more

If gross income is $10,000 or more, must report non commercial loans and payments to the entity.

Schedule A – 2Investments, Income and Assets(continued)

Real property must be located in jurisdiction.

Real property interest disclosed whether ownership or a lease held by official, spouse or dependent child.

Ownership or lease must be worth $2,000 or greater.

If the total interest is 10% or greater, the name of any tenant paying $10,000 or more in rent must be reported.

Personal or private loans of $500 or more promised or received fair market are reportable (loans from a commercial lender are not reportable unless deducted as a business expense.)

Schedule BInterests In Real Property

Amount of gross income must be $500 or more.

Only report source of income including loans from non-commercial lenders located in and doing, planning or done business in the jurisdiction during the previous two years.

Report salary, wages, commission, including the official’s community property interest in spouse’s income, except for government public wages.

Schedule CIncome, Loans and Business Positions

Report gross income from sale of a house or car.

Government salary, social security or disability payments are not reported.

Reportable business positions if doing or planning to do business in the jurisdiction.

Schedule CIncome, Loans and Business Positions – (continued)

Anything received that contains a personal benefit for which equal consideration is not provided in exchange. All gifts of $50 or more must be reported. Gifts totaling a $420 or more from one source may not be accepted.

Gifts

Gifts include: Discounts or rebates not received

by the public generally Presents, gift baskets and flowers Event tickets Golf fees Travel including lodging and

transportation Meals Dues

Gifts – (continued)

Gifts Do Not Include:• Informational material to assist with the

performance of official duties such as books, reports and pamphlets valued at $420 or less

• Tickets to 501(c)(3) non-profit charitable fundraising events

• Political contributions• Plaques or trophies valued at less than $250• Items from various family numbers unless they

are acting as an agent or intermediary• Inheritance• Items from person(s) the official has a bona fide

dating relationship• Items from someone you regularly exchange

gifts with• Hospitality at home including drinks, meals and

occasional lodging

Gifts – (continued)

Travel paid by official’s agency while official is on agency business

Travel paid by campaign funds Travel paid to give a speech,

presentation or be on a panel Travel paid by employer in course of

work Travel paid by a non-profit, 501(c)3

organization for a legislative or governmental purpose.

Gifts – (continued)Exceptions To Travel Payments Or Reimbursement Considered as a Gift

Gifts To Immediate Family Members

The full value of any gift to an official and to any immediate family member is reported by the official.A gift only to an immediate family member is not a gift to the official if it confers no “personal benefit” on the official. An official incurs “benefit” when he/she:

Enjoy anything but a nominal benefit from the gift.

Official uses the gift and decides who will use the gift.

Gifts – (continued)

Donor can negate the “personal benefit” to the official by:

Showing a social or working relationship with the immediate family member(s).

Nature of the gift means only immediate family member can use the gift

Manner in which the gift is offered or delivered.

Gifts – (continued)

Multiple Donors

Gifts of $50 or more received from multiple donors must be reported and each donor whose share is greater than $50 identified. If a donor or every donor’s share is less than $50, the gift must still be reported with a general description of who gave the gift.

Gifts – (continued)