Conflict of Interest Code Exemptions

Regulation 18751 provides the procedure and standards for obtaining an exemption from Government Code Section 87300, which requires adoption and promulgation of a conflict of interest code.

Exemptions are granted by the FPPC Executive Director only if he or she finds:

(1) That if the agency were to adopt a Conflict of Interest Code, there would be no "designated employees," within the meaning of Government Code Sections 82019 and 87302(a);

(2) That the agency is, or within one year will be, inoperative and nonfunctioning; 

(3) That the agency is a committee, board, or commission that does not possess decision-making authority as defined in 2 Cal. Code Regs. Section 18700, and both of the following apply:

(A) The agency will not acquire real property in the foreseeable future; and

(B) The annual operating budget exclusive of salaries for the agency is less than $150,000; or

(4) That good cause exists for granting an exemption due to extraordinary circumstances that indicate the burden on the agency of adopting a conflict of interest code is not warranted by the degree of likelihood that a conflict of interest may occur.

If you have questions or require further assistance, please Ask FPPC for Advice.