Instructions for Schedules A-1 and A-2, Investments

FPPC Form 700 (2017/2018)
FPPC Toll-Free Helpline: 1 (866) ASK-FPPC - (866) 275-3772
Instructions - Page 7

"Investment" means a financial interest in any business entity (including a consulting business or other independent contracting business) that is located in, doing business in, planning to do business in, or that has done business during the previous two years in your agency's jurisdiction in which you, your spouse or registered domestic partner, or your dependent children had a direct, indirect, or beneficial interest totaling $2,000 or more at any time during the reporting period. See Reference Pamphlet, page 13.

Reportable investments include:

  • Stocks, bonds, warrants, and options, including those held in margin or brokerage accounts and managed investment funds (See Reference Pamphlet, page 13.)
  • Sole proprietorships
  • Your own business or your spouse's or registered domestic partner's business (See Reference Pamphlet, page 8, for the definition of "business entity.")
  • Your spouse's or registered domestic partner's investments even if they are legally separate property
  • Partnerships (e.g., a law firm or family farm)
  • Investments in reportable business entities held in a retirement account (See Reference Pamphlet, page 15.)
  • If you, your spouse or registered domestic partner, and dependent children together had a 10% or greater ownership interest in a business entity or trust (including a living trust), you must disclose investments held by the business entity or trust. See Reference Pamphlet, page 15, for more information on disclosing trusts.
  • Business trusts

You are not required to disclose:

  • Government bonds, diversified mutual funds, certain funds similar to diversified mutual funds (such as exchange traded funds) and investments held in certain retirement accounts. See Reference Pamphlet, page 13, for detailed information. (Regulation 18237)
  • Bank accounts, savings accounts, money market accounts and certificates of deposits
  • Insurance policies
  • Annuities
  • Commodities
  • Shares in a credit union
  • Government bonds (including municipal bonds)
  • Retirement accounts invested in non-reportable interests (e.g., insurance policies, mutual funds, or government bonds) (See Reference Pamphlet, page 15.)
  • Government defined-benefit pension plans (such as CalPERS and CalSTRS plans)
  • Certain interests held in a blind trust (See Reference Pamphlet, page 15.)

Use Schedule A-1 to report ownership of less than 10% (e.g., stock). Schedule C (Income) may also be required if the investment is not a stock or corporate bond. See second example below.

Use Schedule A-2 to report ownership of 10% or greater (e.g., a sole proprietorship).

To Complete Schedule A-1:

Do not attach brokerage or financial statements.

  • Disclose the name of the business entity.
  • Provide a general description of the business activity of the entity (e.g., pharmaceuticals, computers, automobile manufacturing, or communications).
  • Check the box indicating the highest fair market value of your investment during the reporting period. If you are filing a candidate or an assuming office statement, indicate the fair market value on the filing date or the date you took office, respectively.
  • Identify the nature of your investment (e.g., stocks, warrants, options, or bonds).
  • An acquired or disposed of date is only required if you initially acquired or entirely disposed of the investment interest during the reporting period. The date of a stock dividend reinvestment or partial disposal is not required. Generally, these dates will not apply if you are filing a candidate or an assuming office statement.

Examples:

John Smith holds a state agency position. His conflict of interest code requires full disclosure of investments. John must disclose his stock holdings of $2,000 or more in any company that is located in or does business in California, as well as those stocks held by his spouse or registered domestic partner and dependent children.

Susan Jones is a city council member. She has a 4% interest, worth $5,000, in a limited partnership located in the city. Susan must disclose the partnership on Schedule A-1 and income of $500 or more received from the partnership on Schedule C.

Remember:

  • Do you know your agency's jurisdiction?
  • Did you hold investments at any time during the period covered by this statement?
  • Code filers - your disclosure categories may only require disclosure of specific investments.

[End of SCHEDULES A-1 AND A-2: INVESTMENTS - Instructions - Page 7]