State of California

Convention Center
1202 S. Figueroa Street
Room 216 BC
Los Angeles, CA

May 27, 1976
10:00 a.m.



76-9-1 Approval of Minutes of the April 12, 1976 Board

76-9-2 Public Hearing - Conflict of Interest Code 1

76-9-3 Other Business -
a. Research Projects 60
b. Executive Session

ITEM NO.: 76-9-2

Public Hearing to Consider Proposed Conflict of Interest Code.


Adopt Resolution 76-22.


On June 4, 1974, at the primary election, the voters approved the
Political Reform Initiative (Proposition 9). This initiative
adopted the Political Reform Act of 1974 (Government Code
Sections 81000 et seq., hereinafter referred to as the Act).

Chapter 7 of the Act, relating to Conflicts of Interest, affects
the activities of the Board in the following two ways:

1. It sets forth a general prohibition against conflicts of
interest applicable to all officers and employees of the
Board, including all civil service employees.

2. It requires the Board to adopt and promulgate a Conflict of
Interest Code designating positions which involve the making
or participation in the making of decisions which may
foreseeably have a material effect on a financial interest
of the incumbent. Such designated employees are required to
file disclosure statements and to disqualify themselves from
participating in any action which may affect their financial

The attached draft Conflict of Interest Code is submitted in
compliance with the latter requirement. The Code is drawn in a
format suitable for incorporation by reference into the Board's's
regulations in the California Administrative Code. This fact is
reflected in the content of the accompanying Resolution, which
contains two short proposed regulations suitable for adoption
into each of the principal segments of the Board's regulations.
The use of two regulations, one in each title of the California
Administrative Code, which the staff recommends here, is based on
a suggestion from the Office of Administrative Hearings.

The staff recommends that the Code be adopted, although it will
not technically become effective until it has been approved by
the FPPC. Once the FPPC has given its approval, the Code will be
filed with the Secretary of State by the Executive Officer and
thereupon become operative. If any changes in the Code are
required by the FPPC, the Code will be resubmitted to the Board
at a later meeting for further action.

ATTACHMENTS: Resolution 76-22
Staff Report 76-9-2
Proposed Conflict of Interest Code (Appendix I)
Public Hearing Notice (Appendix II)