CC Resolution No. 8605
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RESOllJI'ICN ro. 8605
A RESOllJI'ICN OF '!HE CITY cx:xJNCIL OF '!HE CITY OF aJPERTINJ
RESCINDIN; RESOllJI'ICN ro. 6513 AND RESOllJI'ICN ro. 6730
AND A!JOPI'IN; '!HE a:NFLICl' OF INlEREST CXDE OF '!HE CITY OF aJPERTINJ
FOR OFFICIAUJ AND DESIGNATED EMPlOYEES
RESOLVED, by the City Council of the City of CUpertino, as foll0W5:
1. Amendment and ReDeal
'lhat that Code entitled, "Conflict of Interest Code of the City of
Cupertino for Officials and Designated ~loyees" is hereby amended,
approved, and adopted as set forth in Exhibit "A" attached hereto and by
this reference IMde a part hereof. Further that Resolution No. 6513 and
Resolution No. 6730 are hereby rescinded.
2. Effective Date
The effective date of the amendments to this Code shall be thirty (30)
days after adoption of this resolution by the City Council.
3. Filina of Resolution
The Clerk is hereby directed to file a ropy of this resolution with
her office and to make it available to l11eßtJers of the general public.
PASSED AND ADOPIED at
City of CUpertino this
following vote:
a regular meeting of the City Council of the
2nd day of March , 1992 by the
vote Members of the citv Council
AYES: Dean, Goldman, Koppel, Szabo, Sorensen
NOES: None
ABSENT: None
~: None
ATI'EST: APPROI1ED:
/s/ Dorothy Cornelius
City Clerk
/s/ Lauralee Sorensen
Mayor, City of CUpertino
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RESOllJI'ICN ro. 8605
EXHffiIT "A"
a:NFLICl' OF INlEREST CXDE
OF '!HE CITY OF aJPERTINJ
FOR OFFICIAI8 AND DESIGNATED EMPlOYEES
Section 1.00 - Authoritv. '!hese amendments to the Conflict of
Interest Code of the City of CUpertino for Officials and Designated
EDployees are adopted by the City Council of the City of CUpertino
pursuant to, and in inplementation of Government Code Sections 87300 and
87307 of the state of California. Nothing contained herein is intended to
IIDdify or abridge the provisions of the Political Refo:rm Act of 1974
(Government Code Section 81000 et. ~). '!he provisions of this rode are
additionsl to Goverrnænt Code Section 81000 and other laws pertaining to
conflicts of interest. Except as otherwise indicated, the definitions of
said act and regulations adopted pursuant thereto are incorporated herein
and the code shall be interpreted in a manner consistent therewith.
Section l.Ol - Severabilitv. If any article, section, subsection,
paragraph, sutparagraph, sentence, clause, or phrase of this Code is for
any reason held to be invalid, unconstitutional or unenforceable, such
decision shall not affect the validity of the renaining portions of this
Code. The City Council of the City of CUpertino declares that it would
have adopted these amendments, and each article, section, subsection,
paragraph, sutparagraph, sentence, clause, and phrase thereof,
irrespective of the fact that anyone or IIDre of such portions of these
amendments be declared invalid, unconstitutional, or unenforceable.
Section l.02 - Effective Date. '!hese amendments to this Code shall
take effect thirty (30) days after their approval by the City Council of
the City of CUpertino.
Section l.03 - Definitions. As used in this Code, unless the context
otherwise clearly inplies, the following'tJOrds and te:rms shall have the
neanings set forth herein.
(a) Business entitv. "Business entity" means any organization
or enterprise operated for profit, including but not limited to a
proprietorship, partnership, fi:rm, business trust, joint venture,
syndicate, corporation or association.
(b) Consultant. "Consultant" means a position established by
contract with the City of Cupertino pursuant to which contract
infonnation, advice, rea:.mnendation or counsel is provided to the City of
CUpertino, ,provided, however, that "consultant" shall not include a
position lD which the person providing such infonnation, advice,
rea:.mnendation or counsel:
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RESOllJI'ICN ro. 8605
(1) conducts research and arrives at conclusions with
respect to his or her rendition of infonnation, advice, rea:.mnendation
or counsel independent of the control and direction of the City of
CUpertino or of any local agency official, other than no:rmal contract
IIDnitoring¡ and
(2) possesses no authority with respect to any City of
Cupertino nnmicipal decision beyond the rendition of infonnation,
advice, recx:mnendation or counsel.
(3) is an engineer or land surveyor who provides
professionsl services and does not exercise public agency
decision-making authority as a contract city engineer or surveyor and
meets the requirements as stated in Government Code Section 871000.1.
(c) Countv. "County" means the County of Santa Clara, in which
this local agency is located.
(d) Desianated ell9lovee. "Designated enployee" means (i) a
natural person holding, or representing a business entity which holds, a
designated position, (ii) a l11eßtJer, salaried or unsalaried, of any board,
acmnission, or acmnittee holding a designated position, or (iii) a
consultant to (i) or (ii). "Designated enployee" <Des not include an
elected state officeR or any unsalaried l11eßtJer of any board or exmnission
which serves a solely advisory function and also <Des not include any
unsalaried l11eßtJer of a non-regulating acmnittee, section, acmnission or
other such entity established by the state Bar of California.
(e) Desianated positions. '!he positions listed in ~ "A"
attached to this Code are designated positions. Officials and enployees
holding these positions are cleaned to make, or participate in the making
of, decisions which may foreseeably have a material effect on a financial
interest .
(f) Disclosure statements. "Disclosure statements" means
statements disclosing reportable interests required by Sections 2.00 and
2.01 to be filed by designated enployees.
(g) Reoortable interests. "Reportable interests" means
investments, interests in real property and ina:me, including loans and
gifts in certain specified aJIDunts, required to be disclosed by designated
enployees which have saæ relationship, direct or indirect, to the
official duties and responsibilities of such enployees. "Reportable
interests" as to any particular designated enployee means those categories
of such interests assigned, by A¡:pmdix "A" , attached hereto, to the
designated position held by such enployee. "Reportable interests" as to
any particular enployee are cleaned by said assignments to be affected
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RESOI1JTICN ro. 8605
foreseeably and materially by any decision IMde or participated in by the
designated enployee by virtue of his or her position and have saæ
relationship, direct or indirect, to the official duties and
responsibilities of such position.
(h) Incoroorated definitions. Except as otherwise indicated,
the definitions contained in the Political Refo:rm Act of 1974 (Government
Code Section 81000, et, .§§g.) and Regulations adopted pursuant thereto are
incorporated into this Code.
Section 2.00 - Disclosure statements. Each designated enployee shall
file an initial statement disclosing those reportable interests in the
categ:>ry or categ:>ries of real property, investments, and business
positions, as set forth in ~ "B", which are assigned by ~
"A" hereof to the designated position held by such enployee. In addition
ina:me fran all reportable sources within the last t\oIelve =nths must be
reported. SUch statements shall be filed at the place specified in
Section 3.00(a) and at the tines specified in Section 3.00(c), (d), (e),
and/or (f), and shall be on the fo:rm specified in Section 4.00. Annual
statements shall be filed thereafter.
Section 2.01 - TeJ:mination statements. Each designated enployee shall
file a disclosure statement within thirty (30) days after leaving a
designated position, CXJVering the period bet\oIeen the closing date of the
last statement required to be filed and the date of leaving such
position. SUch statements shall be filed at the place specified in
Section 3.00 (a) and shall be on the fo:rm specified in Section 4.00.
Section 3.00 - Place and Tille of Filina.
(a) All persons holding designated positions who are required to
sul::mit a statement of financial interest shall file the original with the
City Clerk of the City of CUpertino.
(b) '!he Clerk of the City of CUpertino shall file the original
statements and make than available for review.
(c) All persons holding designated positions who are required to
sul::mit statements of financial interest shall sul::mit an initial statement
within thirty (30) days after the effective date of this Code, disclosing
interests held on the effective date of this Code. '!he first statement
filed by a designated alployee shall disclose any reportable investments
and interests in real property and incxxœ within the last t\oIelve IIDnths
fran all reportable sources.
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RESOllJI'ICN ro. 8605
(d) Probationary or certified enployees appointed, ,ILUIlut.eci, or
transferred to designated positions shall file initial statements within
thirty (30) days after date of arployment, disclosing interests held on
the date of enployment. '!he first statement filed by a designated
enployee shall disclose any reportable investments and interests in real
property and incx:me within the last t\oIelve IIDnths fran all reportable
sources .
(e) All other persons appointed þ.LUlluLed, or transferred to
designated positions shall file initial statements not IIDre than thirty
(30) days after assuming the position, disclosing reportable interests
held on the date of assuming office. Persons already occupying a position
subsequently added to the categories of designated positions by an
amendment to this Code shall file initial statements within thirty (30)
days after the effective date of the amendment, disclosing reportable
interests held on the effective date of the amendment.
'!he first statement filed by a designated enployee shall disclose any
reportable investments, interests in real property, investments held by
business entities and trusts and incx:me within the last t\oIelve =nths fran
reportable sources.
(f) An annual disclosure statement shall be filed no later than
April 1 of each year by each designated enployee, disclosing investments,
interests in real property and incx:me held or received at any tine during
the previous calendar year or since the date the designated enployee
assuned such position if during the calendar year.
(g) A designated enployee who is required to file a statement of
financial interest with any other agency, which is within the same
territorial jurisdiction, may a:1Iply with the provisions of this Code by
filing a duplicate of the statement filed with the other agency in lieu of
an entirely separate document, provided that each duplicate filed in place
of an original is signed and verified by the designated enployee as if it
were an original
Section 4.00 - Contents of Disclosure statements. Disclosure
statements shall be IMde on fo:rms su¡:plies by the Clerk of the City of
CUpertino and prescribed by the Fair Political Practices Camlission.
Disclosure statements shall contain the following infonnation:
(a) Contents of Investment and Real Procerty Reoorts. When an
investment, or an interest in real property, is required to be reported by
Appendix "B", the statement shall contain:
(1) A statement of the nature of the investment or
interest;
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RESOllJI'ICN ro. 8605
(2) '!he name of the business entity in which each
investment is held, and a general des=iption of the business activity
in which the business is engaged;
(3) '!he address or other precise location of the real
property;
( 4) A statement whether the fair market value of the
investment or interest in real property equals or exceeds one thousand
dollars ($1,000) but <Des not exceed ten thousand dollars ($10,000),
whether it exceeds ten thousand dollars ($10,000) but <Des not exceed
one hundred thousand dollars ($100,000), or whether it exceeds one
hundred thousand dollars ($100,000);
(5) In the case of a statement filed under Sections 2.00
and 2.01 of this Code, if the investment or interest in real property
was partially or wholly aCXIUired or disposed of during the period
covered by the statement, the date of a~sition or disposal.
(6) For purposes of disclosure under this section,
"interest in real property" does not include the principal residence
of the filer or any other personal property which the filer utilizes
exclusively as the personal residence of the filer.
(b) Contents of Personal Incx:me and Business Entity Incx:me
Reoort .
(1) When incx:me is required to be reported by A¡:pmdix "B",
the statement shall contain, except as provided in subsection (2):
a. '!he name and address of each source of ina:me
aggregating two hundred fifty dollars ($250) or IIDre in value, or
fifty dollars ($50) or IIDre in value if the ina:me was a gift,
and a general des=iption of the business activity, if any, of
each source;
b. A statement whether the aggregate value of incx:me fran
each source, or in the case of a loan, the highest aJIDunt 0IIIed to
each source, was at least two hundred fifty dollars ($250) but
did not exceed one thousand dollars ($1,000), whether it was in
excess of one thousand dollars ($1,000) but was not greater than
ten thousand dollars ($10,000), or whether it was greater than
ten thousand dollars ($10,000);
c. A des=iption of the consideration, if any, for which
the incx:me was received;
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RESOllJI'ICN ro. 8605
d. In the case of a gift, the aJIDunt and the date on which
the gift was received;
e. In the case of a loan, the annual interest rate and the
security, if any, given for the loan.
(2) When the filer's pro rata share of ina:me of a business
entity, including ina:me of a sole proprietorship, is required to be
reported under this Code, the statement shall contain:
a. The naJœ, address, and a general des=iption of the
business activity of the business entity¡
b. The naJœ of every person fran whan the business entity
received paymants if the filer's pro rata share of the gross
receipts fran such person was equal to or greater than ten
thousand dollars ($10,000) during a calendar year.
Section 5.00 - Disaualification. All persons holding designated
positions IllUBt disqualify thanselves fran making or participating in the
making of any decisions in which they have a reportable financial
interest, when it is reasonably foreseeable that such interest may be
"materially affected" by the decision. No person holding designated
positions shall be required to disqualify himself or herself with respect
to any matter which could not be legally acted upon or decided without his
or her participation.
(a) "Materially Affected" - standard of Dete:rmination. '!he
financial effect of a cpvernmental decision on a financial interest of a
person holding a designated position is material if, at the time, the
person holding a designated position makes or participates in the making
of a decision, in light of all the circumstances and facts known at the
time of the decision, that person knows, or has reason to knc7,,¡, that the
existence of the financial interest might interfere with that person's
perfonnance of his or her duties in an iIIpartial manner free fran bias.
(b) circumstances to be Considered. In dete:rmining the
existence of a material effect upon a financial interest, the person
holding a designated position shall consider relevant factors, including
but not limited to the following:
( 1) Whether any business entity in which the designated
enployee has a direct or indirect investment 'tJOrth one thousand
dollars ($1,000) or IIDre¡
(2) Whether any real property in which the designated
aIployee has a direct or indirect interest 'tJOrth one thousand dollars
($1,000) or IIDre¡
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RESOllJI'ICN ro. 8605
(3) Whether any source of inCJCll1e, other than gifts and
other than loans by a cx:.mærcial lending institution in the regular
course of business on te:rms available to the public without regard to
official status, aggregating t't.IO hundred fifty dollars ($250) or IIDre
in value provided to, received by or pranised to the designated
alployee within t\oIelve IIDnths prior to the tllie when the decision is
IMde;
( 4) Whether any business entity in which the designated
enployee is a director, officer, partner, trustee, enployee, or holds
any position of managaœnt; and
(5) Whether any donor of, or any inte:rmediary or agent for
a donor of, a gift or gifts aggregating t't.IO hundred fifty dollars
($250) or IIDre in value provided to, received by, or pranised to the
designated alployee within t\oIelve (12) =nths prior to the time when
the decision is IMde.
For purposes of this Section 5.00, indirect investment or interest
means any investment or interest owned by the spouse or dependent child of
a designated alployee, by an agent on behalf of a designated enployee, or
by a business entity or trust in which the designated enployee, the
designated enployee's spouse, agents, and dependent children own directly,
indirectly, or beneficially a ten percent (10%) interest or greater.
Section 6.00 - Penalties. Any person holding a designated position
who violates any of the reporting or disclosure provisions of this Code is
guilty of a misdemeanor punishable as provided in Section 91000 of the
Govermœnt Code and is also subject to any and all civil penalties as
prescribed in Section 91004 and 91013 of the Government Code. '!he above
described penalties are in addition to any other penalties as may be
prescribed by law.
Section 7.00 - ExceDtions. Any person who resigns a designated
position within forty-five (45) days following his or her initial
appointment is not required to file an asstuning or leaving office
statement of econcmic interests as long as the individual does not make,
participate in making or use the position to influence any decision of the
agency and <Des not receive or beocIœ entitled to receive any fo:rm of
payment by virtue of being appointed to the position.
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RESOllJI'ICN ro. 8605
APPENDIX nAil
DESIGNATED POSITICNS AND
APPLICABIE REPORmBIE INlEREST CA'lEXDUES
DESIGNATED POSITICNS*
Ccmnissions
Affordable Housing Ccmnittee
Architectural & Site Awroval Ccmnittee MeIItJers
Cable TIT Advisory Ccmnittee Members
Fine Arts Ccmnissioners
Parks and Recreation Ccmnissioners
EnDlovees
Assistant City Attorney, Deputy City Attorney
Assistant Civil Engineer
Assistant to the City Manager
Associate Planner
Building Inspection I
Building Inspection II
Building Official
City Clerk
City Planner
Code Enforcement Officer
Deputy City Clerk
Deputy Director of Public \'k>rks
Deputy Treasurer
Director of Carmunity Developnent
Director of Finance
Director of Parks and Recreation
Director of Public \'k>rks - City Engineer
Electrical Inspector
Engineering Technician
Envi.ronIæntal Programs Manager
Facilities supervisor
Facility Projects Manager
Grounds supervisor
Housing and Services Coordinator
Housing Specialist
planner I
Planner II
Public Infonnation Officer
Public \'k>rks 1\dministrative Assistant
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REPORmBIE INlEREST
CA'lEXDUES
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
B,D,E,F,G & H-l,-2,-3
A through H-3
BandC
B,D,E,F,G & H-l,-2,-3
B,D,E,F,G & H-l,-2,-3
B,D,E,F,G & H-l,-2,-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
B,D,E,F,G & H-l,-2,-3
B
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
A through H-3
BandC
BandC
D,E,F,G and H-l,-2,-3
A through H-3
RESOllJI'ICN ro. 8605
Public \'brks Inspector
Public \'brks SUperintendent
Purchasing Officer
Redevelopænt Agency
Senior Building Inspector
Senior Engineering Technician
Senior Planning Technical
Senior Traffic Technician
Street SUpervisor
Traffic Engineer
Traffic Technician
Water Systans SUpervisor
B,D,E,F,G & H-l,-2,-3
B,D,E,F,G & H-l,-2,-3
A through H-3
A through H-3
A through H-3
B
B
A through H-3
A through H-3
A through H-3
B
B,D,E,F,G & H-l,-2,-3
Consultants**
A through H-3
* or as hereafter may be reclassified
** '!be City Manager may dete:rmine in writing that a particular
consultant, although a "designated position", is hired to perfo:rm a
range of duties that is limited in scope and thus is not required to
fully cx:uply with the disclosure requirements in this section. SUch
written dete:rmi.nation shall include a description of the consultant's
duties and, based upon that description, a statement of the extent of
disclosure requirements. '!he City Manager's dete:rmi.nation is a public
record and shall be retained for public inspection in the same manner
and location as this conflict of interest rode.
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RESOllJI'ICN ro. 8605
APPENDIX liB"
a:NFLICl' OF INlEREST DIscrDSURE CA'lEŒJRIES
1. Interest in Real Proœrtv. (Categ:>ry B)
Each person assigned Category B in A¡:pmdix "A" of this Code shall
disclose all reportable interests in real property.
A. "Interest in real property" includes any leasehold,
beneficial or ownership interest or an option to acquire such a interest
in real property located in the jurisdiction owned directly, indirectly or
beneficially by the designated enployee, or other filer, or his or her
irrmediate family if the fair market value of the interest is one thousand
cbllars ($1,000) or IIDre. Interests in real property of an individual
includes a pro rata share of interests in real property of any business
entity or trust in which the individual or irrmediate family owns,
directly, indirectly or beneficially, a ten percent (10%) interest or
greater .
B. For purposes of disclosure under this Code, "interest in
real property" does not include the principal residence of the filer or
any other property which the filer utilizes exclusively as the personal
residence of the filer.
II. Investments. (Categories A, C & H-l, -2 and -3)
Each person assigned Category A, C or H-l, -2 or -3 in ~
"A" of this Code shall disclose all reportable investments in business
entities.
A. "Investment" means any financial interest in or security
issued by a business entity, including but not limited to u.alllun stock,
preferred stock, rights, waIrants, options, debt instruments and any
partnership or other ownership interest owned directly , indirectly or
beneficially by the designated enployees, or his or her irrmediate family,
if the business entity or any parent, subsidiary or otherwise related
business entity has an interest in real property in the jurisdiction, or
does business or plans to cb business in the jurisdiction, or has done
business within the jurisdiction at any tiJœ during the t't.IO years prior to
the tiJœ any statement or other action is required under this Code.
"Jurisdiction" is defined for purposes of this section as those areas
located within the boundaries of the City of CUpertino or any other area
within the control of the City of CUpertino. No asset shall be cleaned an
investment unless its fair market value equals or exceeds one thousand
cbllars ($1,000).
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RESOllJI'ICN ro. 8605
B. Investments of an individual includes a pro rata share of
investments of any business entity, mutual fund, or trust in which the
individual or inmediate family owns, directly, indirectly or beneficially,
a ten percent (10%) interest or greater. '!he te:rm "parent, subsidiary or
otherwise related business entity" shall be as specifically defined by
regulations of the Fair Political Practices Ccmnission.
c. '!he te:rm "investment" <Des not include a time or danand
deposit in a financial institution, shares in a credit union, any
insurance policy, interest in a diversified mutual fund registered with
the Securities and Exchange Catrnission under the Investment Cœpany Act of
1940 or a CJC!IIIDn trust fund which is created pursuant to Section 1564 of
the Financial Code of the state of California, or any bond or other debt
instruIœnt issued by any g:werrnœnt or g:werrnœnt agency.
III. Ina:me. (Categ:>ries D, E, F, G & H-l, -2, -3)
Each person assigned Categ:>ry D, E, F, G or H-l, -2 or -3 in ~
"A" of this Code shall disclose all sources of reportable incx:.me.
A. unless otherwise provided in subsections C or D, belor.r,
"incx:.me" includes a payment received, including but not limited to any
salary, wage, advance, dividend, interest, rent, proceeds fran any sale,
gift, including any gift of food or beverage, loan, forgiveness or payment
of indebtedness received by the designated enployee or other filer,
reiIlbursement for expenses, per dian, or contribution to an insurance or
pension program paid by any person other than an enployer, and including
any cxmnunity property interest in the incx:.me of a spouse. Ina:me of an
individual also includes a pro rata share of any ina:me of any business
entity or trust in which the individual or spouse owns, directly,
indirectly or beneficially, a ten percent (10%) interest or grater.
B. Incx:.me which must be reported includes incx:.me fran each
source, including outstanding loans, aggregating t\«> hundred fifty dollars
($250) or IIDre in value, or fifty dollars ($50) or IIDre in value if the
incx:.me was a gift.
C. "Incx:.me, " other than a gift, does not include incx:.me
received fran any source outside the jurisdiction and not doing business
within the jurisdiction, not planning to do business within the
jurisdiction, or not having done business within the jurisdiction during
the t\«> years prior to the tiIæ any statement or other action is required
under this Code.
D. "Incx:.me" also <Des not include: (1) canpaign contributions
required to be reported under Chapter 4 (cxmœncing with Section 84100) of
Title 9 of the Goverrnœnt Code of the state of California¡ (2) salary and
reiIlbursement for expenses or per dian received fran a state, local, or
federal g:werrnœnt agency and reinbursement for travel expenses and per
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RESOllJI'ICN ro. 8605
dian received fran bona fide educational, academic or charitable
organizations; (3) any devise or inheritance; (4) interest, dividends or
praniums on a time or danand deposit in a financial institution, shares in
a credit union or any insurance policy, or any bond or other debt
instrument issued by any cpvernment or cpvernment agency; (5) dividends,
interest or any other return on a security which is registered with the
Securities and Exchange Ccmnission of the United states Government; (6)
redenption of a mutual fund; (7) alinDny or child suwort payments; (8)
any loan or loans fran a cx:mnercial lending institution which are made in
the lender's regular course of business on te:rms available to l11eßtJers of
the public without regard to official status if: (i) such loan is used to
purchase, refinance the purchase of, or for inprovaœnts to, the principal
residence of filer, or (ii) the balance 0IrIed does not exceed ten thousand
dollars ($10,000); (9) any loan fran an individual's spouse, child,
parent, grandparent, grandchild, brother, sister, parent-in-law,
brother-in-law, sister-in-law, nephew, niece, uncles, aunt, or first
cousin or the spouse of any such person, provided that a loan fran any
such person shall be considered incx:me if the lender is acting as an agent
or intermediary for any person not covered by this paragraph; (10) any
indebtedness created as a part of a retail instal1Iænt or credit card
transaction if made in the lender's regular course of business on te:rms
available to rœmbers of the public without regard to official status, so
long as the balance 0IrIed to the creditor <Des not exceed ten thousand
dollars ($10,000); (11) payments received under a defined benefit pension
plan qualified under Internal Revenue Code Section 40l(a); and (12) a
payment to a local cpvernment agency to defray the estimated reasonable
costs to process any application, approval, or any other action, including
but not limited to, holding public hearings and evaluating or preparing
any report or doci.mIent, shall not by reasons of the payments be a source
of incx:me to a person who is retained or enployed by the agency.
E. "Gifts" are defined as any payment to the extent that
consideration of equal or greater value is not received and include a
rebate or discount in the price of anything of value unless the rebate or
discount is IMde in the regular course of business to l11eßtJers of the
public without regard to official status. Any person, other than a
defendant in a criminal action, who claims that a paynent is not a gift by
reason of receipt of consideration has the burden of proving that the
consideration received is of equal or greater value.
F. The te:rm "gift" does not include: (1) infonnational
material such as books, reports, panphlets, calendars or periodicals (no
payment for travel or reiJri::Jursement for an expenses shall be de omed
"infonnational material"); (2) gifts which are not used and which, within
thirty (30) days after receipt, are returned to the donor or delivered to
a charitable organization without being claimad as a charitable
contribution for tax purposes; (3) gifts fran an individual's spouse,
child, parent, grandparent, grandchild, brother, sister, parent-in-law,
brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin
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RESOllJI'ICN ro. 8605
or the spouse of any such person; provided that a gift fran any such
person shall be considered a gift if the donor is acting as an agent or
inteImedi.ary for any person not covered by this paragraph; ( 4) canpaign
contributions required to be reported under Chapter 4 (u..a'.L'::UCing with
Section 84100) of Title 9 of the Goverrnœnt Code of the state of
California; or (5) any devise or inheritance.
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