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REVISED FPPC GIFT LIMITS AND DISQUALIFICATION PROCESSES
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REVISED FPPC GIFT LIMITS AND DISQUALIFICATION PROCESSES
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7/19/2019 1:40:11 PM
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City Clerk
Date
1/12/2015
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lyk <br />BEST BEST & KRIEGER � <br />ATTORNEYS AT LAW K15 YiN 10 M 11: <br />CITY 07 q ,M �' rl <br />Memorandum (;!_E R,„ 0i <br />To: Public Agency Clients <br />From: Public Policy & Ethics Compliance Group of BB&K <br />Date: January 12, 2015 <br />Re: Revised FPPC Gift Limits and Disqualification Processes <br />I. <br />INTRODUCTION <br />With the new year, the FPPC has revised upward the gift limit to $460 for 2015- <br />2016. This memorandum discusses that change. Additionally, we take this opportunity to discuss <br />a recurring issue which arises with our public agency clients, namely, how to properly handle <br />recusal and disqualification once a disabling conflict of interest is identified. <br />II. <br />GIFT LIMIT ADJUSTMENT <br />The so-called "gift limit" serves two functions. First, it sets a ceiling on the value <br />of any gift or accumulated gifts a public official may lawfully receive from a single source in any <br />calendar year. Government Code section 89503 prohibits public officials from accepting gifts <br />from a single source in any calendar year with a total value over the specified limit. The FPPC <br />has adjusted the gift limit to four hundred sixty dollars ($460) for 2015-2016. (Reg. 18940.2.) <br />This is an increase from the previous limit of four hundred forty dollars ($440), and affects the <br />receipt, tracking, and reporting of gifts beginning January 1, 2015. (The upward adjustment will <br />also be reflected in Regulation 18730 --- the provisions affecting agency conflict of interest <br />codes.) <br />The second role of the "gift limit" is that it establishes the floor for an "economic <br />interest" that could give rise to a conflict of interest under Government Code section 87100. <br />This adjustment is reflected in Regulation 18703.4, defining the source of a gift as an "economic <br />interest" for disqualification purposes, and raising that floor from four hundred forty dollars <br />($440) to four hundred sixty dollars ($460) or more. Disqualification from participating in the <br />making of a governmental decision is required for public officials who received gifts from a <br />single source totaling four hundred sixty dollars ($460) or more in the twelve (12) months (and <br />not the calendar year) prior to a decision which could directly, and in some circumstances, <br />indirectly, affect the source of the gift. Therefore, the four hundred sixty dollar ($460) figure <br />could include gifts from both the 2014 and 2015 for the purposes of triggering the public <br />official's "economic interest" for disqualification purposes. <br />93939.00001 \950185 8.2 <br />
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