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Terms & Definitions -

(continued)

Exceptions:

Pro Rata Share: The instructions for reporting income

refer to your pro rata share of the income received. Your

•

Some gifts are not reportable or subject to the gift

pro rata share is normally based on your ownership

and honoraria prohibitions, and other gifts may not

interest in the entity or property. For example, if you are

be subject to the prohibitions, but are reportable. For

a sole proprietor, you must disclose 100% of the gross

detailed information, see the FPPC fact sheet entitled

income to the business entity on Schedule A-2. If you own

“Limitations and Restrictions on Gifts, Honoraria,

25% of a piece of rental property, you must report 25% of

Travel, and Loans,” which can be obtained from your

the gross rental income received. When reporting your

filing officer or the FPPC website ( ).

community property interest in your spouse’s or registered

•

The $460 gift limit ($470 during 2017 - 2018) and the

domestic partner’s income, your pro rata share is 50% of

honorarium prohibition do not apply to a part-time

his or her income.

member of the governing board of a public institution of

Separate Property Agreement: Generally, a public official

higher education, unless the member is also an elected

is required to disclose his or her community property share

official.

of his or her spouse’s income. But, when a public official

•

If you are designated in a state or local government

and his or her spouse have a legally separate property

agency’s conflict of interest code, the $460 gift limit

agreement (e.g., prenuptial agreement), the official is

($470 during 2017 - 2018) and honorarium prohibition

not required to report the spouse’s community property

are applicable only to sources you would otherwise

share of income, unless the funds are commingled with

be required to report on your statement of economic

community funds or used to pay for community expenses

interests. However, this exception is not applicable if

or to produce or enhance the separate income of the

you also hold a position listed in Gov. Code Section

official.

87200 (See Reference Pamphlet, page 3.)

Note: This reporting exception does not apply to

•

For state agency officials and employees, the $10

investments and interests in real property. Even if a public

lobbyist/lobbying firm gift limit is applicable only to

official and his or her spouse have a separate property

lobbyists and lobbying firms registered to lobby your

agreement, the spouse’s investments and interests in real

agency. This exception is not applicable if you are an

property must still be disclosed because the definitions

elected state officer or a member or employee of the

of reportable investments and interests in real property

State Legislature.

include those held by the official’s immediate family

•

Payments for articles published as part of the practice

(spouse, registered domestic partner, and dependent

of a bona fide business, trade, or profession, such as

children). These definitions are not dependent on

teaching, are not considered honoraria. A payment for

community property law.

an “article published” that is customarily provided in

connection with teaching includes text book royalties

Income to a Business Entity: When you are required to

and payments for academic tenure review letters. An

report sources of income to a business entity, sources

official is presumed to be engaged in the bona fide

of rental income, or sources of commission income, you

profession of teaching if he or she is employed to teach

are only required to disclose individual sources of income

at an accredited university.

of $10,000 or more. However, you may be required to

disqualify yourself from decisions affecting sources of

Judges:

$500 or more in income, even though you are not required

Section 170.9 of the Code of Civil Procedure imposes gift

to report them.

limits on judges and prohibits judges from accepting any

Examples:

honorarium. Section 170.9 is enforced by the Commission

on Judicial Performance. The FPPC has no authority to

•

Alice Ruiz is a partner in a business entity. She has a

interpret or enforce the Code of Civil Procedure. Court

25% interest. On Schedule A-2, she must disclose 25%

commissioners are subject to the gift limit under the

of the fair market value of the business entity; 25% of

Political Reform Act.

the gross income to the business entity (even though all

of the income received was reinvested in the business

Income Reporting: Reporting income under the Act is

and she did not personally receive any income from the

different than reporting income for tax purposes. The

business); and the name of each source of $40,000 or

Act requires gross income (the amount received before

more to the business.

deducting losses, expenses, or taxes, as well as income

reinvested in a business entity) to be reported.

FPPC Form 700 Reference Pamphlet (2016/2017)

FPPC Advice Email: advice@fppc.ca.gov

FPPC Toll-Free Helpline: 866/275-3772

Ref. Pamphlet - 11

Instructions For Fppc Form 700 Reference Pamphlet - Statement Of Economic Interests - 2016/2017 Page 11

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