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Terms & Definitions -

(continued)

Report incentive compensation as follows:

The Johnsons also own the property where Classic

Autos is located. To determine the reportable value

•

In addition to salary, reimbursement of expenses, and

of the real property, Mark will again aggregate the

other income received from your employer, separately

value of his 50% interest and Cynthia’s 50% interest to

report on Schedule C the name of each person

determine the amount to report in Part 4 of Schedule

who purchased products or services sold, marketed

A-2.

or represented by you if you received incentive

•

Katie Smith rents out a room in her home. She

compensation of $500 or more attributable to the

receives $6,000 a year in rental income. Katie will

purchaser during the period covered by the statement.

report the fair market value of the rental portion of her

•

If incentive compensation is paid by your employer in

residence and the income received on Schedule B.

a lump sum, without allocation of amounts to specific

customers, you must determine the amount of incentive

Jurisdiction: Report discloseable investments and

compensation attributable to each of your customers.

sources of income (including loans, gifts, and travel

This may be based on the volume of sales to those

payments) that are either located in or doing business in

customers.

your agency’s jurisdiction, are planning to do business in

your agency’s jurisdiction, or have done business during

(See Regulations 18700.1 and 18728.5 for more

the previous two years in your agency’s jurisdiction,

information.)

and interests in real property located in your agency’s

Investment Funds: The term “investment” no longer

jurisdiction.

includes certain exchange traded funds, closed-end funds,

A business entity is doing business in your agency’s

or funds held in an Internal Revenue Code qualified plan.

jurisdiction if the entity has business contacts on a regular

These non-reportable investment funds (1) must be bona

or substantial basis with a person who maintains a physical

fide investment funds that pool money from more than 100

presence in your jurisdiction.

investors, (2) must hold securities of more than 15 issuers,

and (3) cannot have a stated policy of concentrating

Business contacts include, but are not limited to,

their holdings in the same industry or business (“sector

manufacturing, distributing, selling, purchasing, or

funds”). In addition, the filer may not influence or control

providing services or goods. Business contacts do not

the decision to purchase or sell the specific fund on

include marketing via the Internet, telephone, television,

behalf of his or her agency during the reporting period or

radio, or printed media.

influence or control the selection of any specific investment

The same criteria are used to determine whether an

purchased or sold by the fund. (Regulation 18237)

individual, organization, or other entity is doing business in

your jurisdiction.

nvestments and Interests in Real Property: When

disclosing investments on Schedules A-1 or A-2 and

Exception:

interests in real property on Schedules A-2 or B, you must

Gifts are reportable regardless of the location of the donor.

include investments and interests in real property held by

For example, a state agency official with full disclosure

your spouse or registered domestic partner, and those held

must report gifts from sources located outside of California.

by your dependent children, as if you held them directly.

(Designated employees/code filers should consult their

Examples:

disclosure categories to determine if the donor of a gift is of

the type that must be disclosed.)

•

Terry Pearson, her husband, and two dependent

children each own $600 in stock in General Motors.

When reporting interests in real property, if your jurisdiction

Because the total value of their holdings is $2,400,

is the state, you must disclose real property located within

Terry must disclose the stock as an investment on

the state of California unless your agency’s conflict of

Schedule A-1.

interest code specifies otherwise.

•

Cynthia and Mark Johnson, a married couple, jointly

For local agencies, an interest in real property is located in

own Classic Autos. Mark must disclose Classic Autos

your jurisdiction if any part of the property is located in, or

as an investment on Schedule A-2. To determine the

within two miles of, the region, city, county, district, or other

reportable value of the investment, Mark will aggregate

geographical area in which the agency has jurisdiction, or if

the value of his 50% interest and Cynthia’s 50%

the property is located within two miles of any land owned

interest. Thus, if the total value of the business entity is

or used by the agency.

$150,000, he will check the box $100,001 - $1,000,000

in Part 1 of Schedule A-2. (Also see Reference

Pamphlet, page 11, for an example of how to calculate

reportable income.)

FPPC Form 700 Reference Pamphlet (2016/2017)

FPPC Advice Email: advice@fppc.ca.gov

FPPC Toll-Free Helpline: 866/275-3772

Ref. Pamphlet - 13

Instructions For Fppc Form 700 Reference Pamphlet - Statement Of Economic Interests - 2016/2017 Page 13

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