Proposed Amended Conflict of Interest Code for Designated State Bar Employees

The State Bar seeks public comment on proposed updates to its conflict of interest code for employees, contractors, and volunteers required to disclose financial interests, including changes to job titles and enhanced reporting obligations. These updates aim to comply with all applicable laws and regulations, align with recent updates to the code for State Bar Trustees, and improve clarity in the descriptions of disclosure categories. Length of comment period: 45 days. 

Deadline: January 4, 2024, 11:59 p.m.

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly and can also be used to upload your comment letter and/or other attachments.

Background

The Political Reform Act (PRA) requires that every state agency adopt a conflict of interest code for officers, employees, and consultants who, during the course of their work for the agency, make or participate in making decisions that may foreseeably have a material impact on financial interests. Pursuant to the PRA, the State Bar has adopted a Conflict of Interest Code for Designated Employees of the State Bar of California (Code). The Code adopts the model conflict of interest code set forth in Regulation 18730 of Title 2, Division 6 of the California Code of Regulations. 

The Code includes a list of designated employee positions (including volunteers and contractors) that are subject to the Code (Appendix A); these designated employees must file Statements of Economic Interests (known as Form 700s) disclosing certain financial interests because they make or participate in making decisions that may foreseeably have a material impact on those financial interests. The Code also includes a list of categories in which specific designated employees must disclose interests (Appendix B). 

Discussion/proposal

Public comment is sought on proposed changes to the Conflict of Interest Code. See the full text of the proposed updated Code here. The updates are shown in redline in the Agenda Item 50-4, and include: 
  • Appendix A reflects title changes and new positions. It also increases disclosure requirements for some employees, contractors, and volunteers to comply with the requirement that State Bar positions that make or participate in the making of decisions that are reasonably foreseeable to affect financial interests disclose such interests.
  • Appendix B clarifies disclosure categories. For example:
    • Disclosure Category 1 was adjusted so that senior management no longer need to report interests in businesses of a type that don’t do business with the State Bar. This is consistent with applicable law and with the new Conflict of Interest Code for the Board of Trustees, which is currently pending Supreme Court approval.
    • Disclosure Category 14 now specifies that contractors and consultants must disclose interests if required by the executive director, their contracts, or, if they make decisions for the State Bar or serve in a staff capacity, under disclosure categories 1 and 2, unless otherwise directed in writing. Language about consulting the Board was removed since it is impractical on individual contracts.
    • Disclosure Category 15 was added to cover disclosures by new positions.
  • The introductory statement in the Code provides more information on complying with the Code.

The proposed changes aim to update the Code, clarify requirements, comply with laws and regulations, and provide more guidance. Public comment is invited on the proposed changes.

Any fiscal/personnel impact

N/A

Background material
Source

Board of Trustees 

Deadline

January 4, 2024, 11:59 p.m.

Direct comments to

Comments should be submitted using the online Public Comment Form. The online form allows you to input your comments directly and can also be used to upload your comment letter and/or other attachments.