Memo #
1725
INVESTMENT ADVISERS TO CALIFORNIA PUBLIC FUNDS REQUIRED TO DISCLOSE PERSONAL ASSETS
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February 21, 1990
TO: INVESTMENT ADVISERS COMMITTEE NO. 4-90
RE: INVESTMENT ADVISERS TO CALIFORNIA PUBLIC FUNDS REQUIRED
TO DISCLOSE PERSONAL ASSETS
__________________________________________________________
On January 1, 1990, a California Fair Political Practices
Commission's disclosure requirement for California state and
local investment officers and consultants, such as investment
managers, which have decision-making authority became effective.
Persons subject to the new rules must disclose, generally, their
assets in real property and securities and any income, loans,
gifts and honoraria. Disclosure must be made on Form 721.
Attached are the relevant law, rules and form.
Under Section 82048 of the California Government Code,
"public official" is defined to include "every member, officer,
employee or consultant of a state or local government agency
(emphasis added)." Chapter 7 of the California Fair Political
Practices Commission's conflict of interest provisions states
that the term "consultant" includes
"any natural person who provides, under
contract, information, advice, recommendation
or counsel to a state or local government
agency, provided, however, that "consultant"
shall not include a person who:
(A) Conducts research and arrives at conclusions
with respect to his or her rendition of
information, advice, recommendation or counsel
independent of the control and direction of the
agency or of any agency official, other than
normal contract monitoring; and
(B) Possesses no authority with respect to any
agency decision beyond the rendition of
information, advice, recommendation or counsel.
A number of investment advisers to California state or
local governmental funds have received notices to complete and
return the disclosure document, Form 721.
If you have any comments you would like the Institute to
make to the Fair Political Practices Commission, please contact
the undersigned by March 5, 1990.
Robert L. Bunnen, Jr.
Assistant General Counsel
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