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3. The public official must have an economic interest that may be financially affected by the <br />governmental decision. <br />A public official has an economic interest in any business entity from which they have received <br />income aggregating $500 or more within 12 months prior to the time when the relevant governmental <br />decision is made. (Regulation 18700.1(a)(2).) <br />4. The economic interest of the public official must be directly or indirectly involved in the <br />decision, or there must be a nexus between the public official's duties owed to the source of <br />income and the official's public agency. <br />A nexus exists between the public official's duties owed to the source of income and the official's <br />public agency if the public official receives or is promised the income to achieve a goal or purpose that <br />would be achieved, defeated, aided, or hindered by the decision. (Regulation 18702.3(b).) <br />5. It must be decided what materiality standard applies to the economic interest of the public <br />official <br />Any reasonably foreseeable financial effect on a business entity that is a source of income to a <br />public official is deemed material if the public official receives or is promised the income to achieve a <br />goal or purpose that would be achieved, defeated, aided, or hindered by the decision. (Regulation <br />18702.3(b).) <br />6. Finally, it must have been reasonably foreseeable, at the time the governmental decision was <br />made, that the decision would have a material financial effect on the economic interest of the <br />official <br />If the financial effect can be recognized as a realistic possibility and more than hypothetical or <br />theoretical, it is reasonably foreseeable. (Regulation 18701(a), (b).) A material financial effect on an <br />economic interest is reasonably foreseeable if it is substantially likely that one or more of the materiality <br />standards applicable to the economic interest will be met as a result of the governmental decision. <br />II. Application of the Law to the Facts <br />Ms. Phan was a Public Official. <br />At all times relevant to this matter, Ms. Phan was a member of the Santa Ana City Council, and <br />was thus a public official under the Act. <br />2. Ms. Phan made a Governmental Decision. <br />On November 16, 2021, Ms. Phan, in her official capacity as a member of the City Council, not <br />only voted on the HOO, but lead the discussion. When Ms. Phan voted on the matter, she made a <br />governmental decision. <br />Ms. Phan had an Economic Interest. <br />During the 12 months before November 16, 2021, Ms. Phan received over $10,000 of income <br />from the law firm of Rutan & Tucker (the "Firm"). Ms. Phan's 2021 Form 700 shows over $100,000 from <br />the Firm, where she remains employed as of the date of this letter. She therefore had an economic interest <br />in the Firm on November 16, 2021. <br />4. There was a Nexus between Ms. Phan's Duties owed to the Firin and to the Council. <br />