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File No. A-12-126 <br />Page No. 3 <br /> <br /> <br /> <br />Step Three: What are Councilmember Economic Interests? <br /> <br /> A public official has a financial interest in a decision within the meaning of Section <br />87103 if it is reasonably foreseeable that the decision will have a material financial effect, <br />distinguishable from its effect on the public generally, on the official, a member of his or her <br />immediate family, or on any one of five enumerated economic interests. (Section 87103; <br />Regulations 18703-18703.5.) <br /> <br />The applicable economic interests include: <br /> <br /> <br />An interest in a business entity in which a public official has a direct or indirect <br />investment of $2,000 or more. (Section 87103(a), Regulation 18703.1(a).) <br /> <br />An interest in any business entity in which a public official is a director, officer, partner, <br />trustee, employee, or holds any position of management. (Section 87103(d), Regulation <br />18703.1(b).) <br /> <br />An interest in real property in which a public official has a direct or indirect interest of <br />$2,000 or more. (Section 87103(b), Regulation 18703.2.) <br /> <br />Any source of income, including promised income, to the public official that aggregates <br />to $500 or more within 12 months prior to the decision. (Section 87103(c), Regulation <br />18703.3.) <br /> <br />Any source of gifts to the public official if the gifts aggregate to $420 or more within 12 <br />months prior to the decision. (Section 87103(e), Regulation 18703.4.) <br /> <br />A public official also has an economic interest in his or her personal expenses, income, <br />assets, or liabilities, as well as those of his or her immediate family. This is also known as <br /> <br /> <br />Based on your facts, Councilmember Sarmiento has an economic interest in the family <br />trust as a trustee, in his law practice, and any source of income to that practice. <br /> <br />The Family Trust <br /> <br />Regulation 18234 defines when an official has a direct, indirect, or beneficial interest in a <br />trust and provides the following in pertinent part: <br /> <br />(c) For purposes of determining whether an official has an economic interest in interests <br />in real property, sources of income, and investments of a trust, the official has a direct, indirect, <br />or beneficial interest in a trust if the official is: <br /> <br />* * * <br /> <br />(2) A beneficiary and: <br /> <br />(A) Presently receives income; or <br /> <br /> <br />