Financial Conflict of Interest and Disqualification Rules under the CA Political Reform Act

Overview

All employees: disqualification rules apply

  • Under the State of California Political Reform Act of 1974, all University employees are disqualified from participating in or attempting to influence University business decisions when their personal financial or economic interests may be affected by those decisions. 

Designated Officials: must file financial disclosures (Form 700)

  • Certain employees, called "Designated Officials," must file financial disclosure forms (Form 700) annually. Who becomes a Designated Official is a function of the job responsibilities being assumed. The purpose of these public filings is to alert public officials, and the public, to potential conflicts of interest.

Managing financial and economic conflicts of interest

A financial or economic conflict of Interest involves relationships in which an individual benefits by receiving a payment, gift, royalty, consulting fee, or other financial benefit. Under the Political Reform Act(link is external), if one of the following could be influential in a University decision that you make, participate in, or influence, you may need to disqualify yourself from making, participating in, or influencing that decision:

  1. Any person or organization that gave or promised you income totaling $500 or more within twelve months prior to the University decision;

  2. Any person or organization that gave or promised you gifts totaling $590 or more within twelve months prior to the University decision (note: for 2025 this will increase to $630);

  3. Any real property, other than your primary residence, in which you or your spouse or domestic partner or dependent children have an interest worth $2,000 or more;

  4. Any business entity seeking to do business with the University in which you are a director, officer, partner, trustee, or employee, or hold any position of management;

  5. Any business entity seeking to do business with the University in which you or your spouse or domestic partner or dependent children have an investment worth $2,000 or more;

  6. Your personal finances (and those of you or your spouse or domestic partner or dependent children) – if you or your spouse or domestic partner or dependent children will receive a measurable financial benefit or loss from a University decision. (Cal. Gov’t Code § 87103; 2 C.C.R. § 18702.5)

What does it mean to make, participate in, or influence a decision?

Consultation

The Political Reform Act’s Disqualification Rule is designed to be applied on a decision-by-decision basis.  If you have questions, please contact UC Berkeley’s Conflict of Interest Coordinator at conflict@berkeley.edu(link sends e-mail)

Who is a "Designated Official" who must file Form 700?

Form 700 facts

  • Disclosures are made on the Statement of Economic Interests (Form 700).
  • Form 700 must be filed annually, and is a public document.
  • The type of position the Designated Official holds determines their filing category, i.e., the type of information they must disclose.

How and when does a Designated Official file Form 700?

  • The annual deadline to file the Form 700 is April 1st.  
  • Filers must also submit Assuming and Leaving office forms within 30 days of the relevant change in position status.
  • The Conflict of Interest Coordinator and UC Office of the President will notify filers when forms are due and will give instructions on to submit them via the NetFile platform.

Common Form 700 Errors to Avoid

Penalties for Violations of the Political Reform Act

The University's Conflict of Interest Code(link is external), revised annually and submitted to the Fair Political Practices Commission(link is external) for approval, has the force of law. Any violation of the Code by a designated employee is deemed a violation of the Political Reform Act. Penalties for violating the Political Reform Act include:

  • Administrative fines* to the individual of $5,000 per violation
  • publication of a designated official's name and fine amounts on the FPPC website
  • criminal prosecution (§ 91000)
  • civil action (§ 91004 et seq.)
  • disciplinary action (Gov’t Code § 91003.5)

Other relevant information

  • Form 700U. Principal Investigators must complete an official Principal Investigator's Statement of Economic Interests (Form 700U), if the research project is funded from a non-governmental source, and disclose any financial interests in the sponsor.  See Research Conflict of Interest  for more information about this policy.
  • Outside Professional Activities. The University of California Policy on Outside Professional Activities established by the President on July 1, 1995 requires certain University officials and designated staff as defined in the policy to disclose Outside Professional Activities. The disclosure is made on an annual basis. The call for the request is made in the fall, for the prior 12-month reporting period of July to June.  See Outside Professional Activities for more details on this University policy.