Article Guide
The California 700 U form is an essential document for individuals employed by the University of California (UC) or California State University (CSU) who lead research projects funded by non-governmental entities. This form ensures transparency and accountability by requiring the disclosure of financial interests, income, gifts, and loans related to the research funding. Specifically, it must be filed by principal investigators when their projects receive support from contracts, grants, or earmarked funds from private sources. The form outlines various reporting requirements, including definitions of investments, income, loans, and gifts, which help clarify what must be disclosed. For instance, investments valued at $2,000 or more, income over $500, and gifts worth $50 or more all need to be reported. Understanding these aspects is crucial for compliance with California's political reform regulations, as failing to file or report accurately can lead to civil penalties or disciplinary actions from the university. In this article, we will delve deeper into the specifics of the California 700 U form, exploring who needs to file, what information must be included, and the implications of non-compliance.
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Instructions for Completing Form
CALIFORNIAFORM
Who Files Form
This form must be iled by all persons employed by UC or CSU who have principal responsibility for a research
project if the project is to be funded or supported, in
whole or in part, by a contract or grant (or other funds earmarked by the donor for a speciic research project or for a speciic researcher) from a nongovernmental entity.
Reporting requirements are outlined in Regulation 18755.
This regulation provides that research funding by certain nonproit entities will not trigger disclosure. This regulation is available on the FPPC website.
What is an Investment?
“Investment” means any inancial interest in a business entity in which you, your spouse or registered domestic
partner, or your dependent children have a direct, indirect, or beneicial interest totaling $2,000 or more. Reportable investments include stocks, bonds, warrants,
and options, including those held in margin or brokerage accounts and investment funds. Common examples of investment funds are index funds,
What is Income?
“Income” means a payment received, including but not limited to any salary, wage, advance, dividend, interest, rent, proceeds from any sale, gift, including any gift of food
or beverage, loan forgiveness or payment of indebtedness received by the iler, reimbursement for expenses, per diem,
or contribution to an insurance or pension program paid by any person other than an employer, and any community property interest in income of a spouse or registered domestic partner. Income also includes an outstanding loan. Income of an individual also includes a pro rata share of any income of any business entity or trust in which the
individual, spouse, or registered domestic partner owns directly, indirectly, or beneicially, a 10% interest or greater.
Income includes your gross income and your community property interest in your spouse’s or registered domestic partner’s gross income totaling $500 or more. Gross income is the total amount of income before deducting expenses, losses, or taxes. (See Gov. Code Section 82030.)
What is a Loan?
Loans received or outstanding are reportable if they total $500 or more from a single lender. Your community property interest in loans received by your spouse or registered domestic partner also must be reported. (See Gov. Code Section 82030(a).)
What is a Gift?
A gift is anything of value for which you have not provided equal or greater consideration to the donor. A gift is reportable if its fair market value is $50 or more. In addition, multiple gifts totaling $50 or more received from a reportable source must be reported.
It is the acceptance of a gift, not the ultimate use to which it is put, that imposes your reporting obligation. Therefore you must report a gift even if you never used it or if you gave it away to another person.
If the exact amount of a gift is not known, you must make a good faith estimate of the item’s fair market value. Listing the value of a gift as “over $50” or “value unknown” is not adequate disclosure.
Commonly reportable gifts include:
•Tickets/passes to sporting or entertainment events
•Tickets/passes to amusement parks
•Parking passes
•Food, beverages, and accommodations, including that provided in direct connection with your attendance at a convention, conference, meeting, social event, meal, or like gathering, where you did not give a speech, participate in a panel or seminar, or provide a similar service
•Rebates/discounts not made in the regular course of
business to members of the public without regard to oficial status
•Wedding gifts
•An honorarium. You may report an honorarium as income rather than as a gift if you provided services of equal or greater value than the payment received.
•Transportation and lodging
•Forgiveness of a loan received by you
(See Gov. Code Section 82028.)
FPPC Form
– amount is:
CALIFORNIA
FAIR POLITICAL PRACTICES COMMISSION
Please type or print in ink.
STATEMENT OF ECONOMIC INTERESTS
FOR
PRINCIPAL INVESTIGATORS
Date Received
Campus Use Only
Campus:
ID No:
NAME (LAST)(FIRST)(MIDDLE)TELEPHONE NUMBER
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TITLE OF RESEARCH PROJECT
1. Information Regarding Funding Entity:
(Use a separate Form
Address of Entity:
Principal Business of Entity:
Amount of Funding: $
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2.Type of Statement (Check at least one box) Initial (for new funding)
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Interim (for renewed funding) |
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Funding was renewed on: |
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3.Filer Information
A.Are you a director, oficer, partner, trustee, consultant, employee, or do you hold a position of management in
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Yes |
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B.Do you, your spouse or registered domestic partner, or
your dependent children have an investment of $2,000 or more in the entity listed in Part 1 above?
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$10,001 - $100,000 |
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$100,001 - $1,000,000 |
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If you have sold or divested yourself of investments:
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C.Have you received income of $500 or more from the entity listed in Part 1 during the reporting period?
No Yes
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$500 - $1,000 |
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$10,001 - $100,000 |
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Exceeds $100,000 |
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Was income received through your spouse or registered
domestic partner? |
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3. Filer Information - CONT.
D.Have you received loans from the entity in Part 1 for which the balance exceeded $500 during the reporting period?
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$500 - $1,000 |
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If you checked “yes,” was the loan:
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Was the loan entirely repaid within the last 12 months?
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E.Have you received gifts from the entity listed in Part 1 within the last 12 months valued at $50 or more?
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– describe below. |
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Value: $ |
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F. Has the entity in Part 1 paid for your travel?
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Type of Payment: (check one) |
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Gift |
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Income |
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Description:
4. Veriication
I have used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Date Signed
(month, day, year)
Signature
(File the originally signed statement with your university.)
The Form |
FPPC Form |
This statement is a public record under Gov. Code Section 81008(a). |
FPPC |
Instructions for Completing Form
CALIFORNIAFORM
What is a Travel Payment?
Travel payments include advances and reimbursements for travel and related expenses, including lodging and meals.
•Travel payments are gifts if you did not provide services which were equal to or greater in value than the payments received. You must disclose gifts totaling $50 or more from a single source during the period covered by the statement. Gifts of travel are reportable without regard to where the donor is located.
When reporting travel payments which are gifts, you must provide a description of the gift and the date(s) received.
Effective August 15, 2008, Regulation 18946.6 provides new valuation methods for gifts of air transportation.
•Travel payments are income if you provided services which were equal to or greater in value than the payments received. You must disclose income totaling $500 or more from a single source
during the period covered by the statement. The iler has the burden of proving the payments are
income rather than gifts.
When reporting travel payments as income, you must describe the services you provided in exchange for the payment. You are not required to disclose the date(s) for travel payments which are income.
Gifts of travel may be subject to a $420 gift limit. In
addition, certain travel payments are reportable gifts, but are not subject to the gift limit. See the FPPC fact sheet entitled “Limitations and Restrictions on Gifts, Honoraria, Travel, and Loans,” which can be obtained from the FPPC at www.fppc.ca.gov.
You are not required to disclose:
•Travel payments received from any state, local, or federal government agency for which you provided services equal or greater in value than the payments received
•Travel payments received from your employer in the normal course of your employment
•Payments or reimbursements for transportation within California in connection with an event at which you gave a speech, participated in a panel or seminar, or performed a similar service
•Food, beverages, and necessary accommodations received directly in connection with an event held inside or outside California at which you gave
a speech, participated in a panel, or provided a similar service (note that payments for transportation outside of California are reportable)
•A travel payment which was received from a nonproit entity exempt from taxation under IRS Code Section 501(c)(3) for which you provided equal or greater consideration
Check the box to indicate if the payment was a gift or income, report the amount, and disclose the date(s) if applicable.
Violations
Failure to ile the required Statement of Economic Interests or failure to report a inancial interest may
subject a principal investigator to civil liability, including ines, as well as University discipline. (Gov. Code Sections
Privacy Information Notice
Information requested on all FPPC forms is used by the FPPC to administer and enforce the Political Reform Act (Gov. Code Sections
Act is a violation subject to administrative, criminal or civil prosecution. All reports and statements provided are public records open for public inspection and reproduction.
If you have any questions regarding this Privacy Notice
or how to access your personal information, please
contact the FPPC at:
General Counsel
Fair Political Practices Commission 428 J Street, Suite 620 Sacramento, CA 95814
(916)
FPPC Form
Form Specifications
| Fact Name | Description |
|---|---|
| Who Files | All persons employed by UC or CSU with principal responsibility for a research project funded by a non-governmental entity must file this form. |
| Governing Law | The filing requirements are outlined in Regulation 18755 of the California Government Code. |
| Investment Definition | An investment is any financial interest totaling $2,000 or more in a business entity held by the filer, their spouse, or dependent children. |
| Income Definition | Income includes any payment received, such as salary, dividends, or gifts valued at $500 or more, as defined under Government Code Section 82030. |
| Loan Reporting | Loans exceeding $500 from a single lender must be reported, including any community property interest in loans received by the filer’s spouse. |
| Gift Reporting | A gift is anything of value received without equal consideration, reportable if valued at $50 or more, as per Government Code Section 82028. |
| Travel Payments | Travel payments are considered gifts or income based on whether services were provided in exchange for the payment, and must be reported accordingly. |
California 700 U: Usage Guidelines
Completing the California 700 U form is an important task for individuals involved in research projects funded by non-governmental entities. After filling out the form, it will need to be submitted to the appropriate university office. Make sure to review your entries for accuracy before submission.
- Begin by typing or printing in ink at the top of the form.
- Fill in the date received and campus use only sections.
- Provide your name (last, first, middle) and telephone number.
- Enter your academic unit or department, mail code, and e-mail address.
- State the title of the research project.
- In Section 1, provide information about the funding entity:
- Enter the name of the entity.
- Fill in the address of the entity.
- Describe the principal business of the entity.
- Specify the amount of funding in dollars.
- In Section 2, check at least one box to indicate the type of statement:
- Initial for new funding, and provide the date of initial funding.
- Interim for renewed funding, and provide the date funding was renewed.
- In Section 3, answer the questions about your relationship with the funding entity:
- Indicate if you hold a management position in the entity.
- Report any investments of $2,000 or more in the entity.
- Disclose any income of $500 or more received from the entity.
- Report any loans from the entity exceeding $500.
- List any gifts received from the entity valued at $50 or more.
- Indicate if the entity paid for your travel and describe the payment.
- In Section 4, verify the accuracy of your statement. Sign and date the form.
- File the originally signed statement with your university.
Your Questions, Answered
What is the California 700 U form and who needs to file it?
The California 700 U form is a Statement of Economic Interests specifically designed for principal investigators employed by the University of California (UC) or California State University (CSU). If you have principal responsibility for a research project funded by a contract or grant from a nongovernmental entity, you must file this form. This includes any funding that is earmarked for a specific research project or researcher. It is essential to comply with Regulation 18755, which outlines the reporting requirements for such funding.
What types of financial interests must be reported on the form?
When completing the California 700 U form, you need to report various types of financial interests. These include investments, income, loans, and gifts. An investment is defined as any financial interest totaling $2,000 or more held by you, your spouse, or dependent children in a business entity. Income includes payments such as salary, dividends, or gifts valued at $50 or more. Loans must be reported if they exceed $500 from a single lender, and any gifts received must also be disclosed if their fair market value is $50 or more. Understanding these categories will help ensure accurate reporting.
What constitutes an investment under the California 700 U form?
An investment is defined as any financial interest in a business entity where you, your spouse or registered domestic partner, or your dependent children have a direct, indirect, or beneficial interest totaling $2,000 or more. This can include stocks, bonds, warrants, options, and investment funds. Common examples of investment funds include index funds and exchange-traded funds. If you have any such interests, it’s important to disclose them on the form to maintain transparency.
How should gifts be reported on the California 700 U form?
Gifts must be reported if their fair market value is $50 or more. A gift is anything of value received for which you did not provide equal or greater consideration to the donor. This includes items such as tickets to events, food, or accommodations. If you receive multiple gifts from a reportable source that total $50 or more, these must also be disclosed. When reporting, you should provide a good faith estimate of the gift’s value if the exact amount is unknown. Simply stating “over $50” is not sufficient.
What are the consequences of failing to file the California 700 U form?
Failing to file the California 700 U form or not accurately reporting financial interests can lead to serious consequences. Principal investigators may face civil liability, including fines, and potential disciplinary action from the university. Compliance with the reporting requirements is mandated by the Political Reform Act, and all reports are considered public records. Therefore, it is crucial to ensure that the form is completed accurately and submitted on time to avoid any legal repercussions.
Common mistakes
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Failing to complete the form in ink or using an unapproved format. It is essential to type or print clearly.
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Not using a separate Form 700-U for each funding entity. Each funding source requires its own report.
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Overlooking to check at least one box under the type of statement. Indicating whether it is an initial or interim statement is crucial.
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Neglecting to disclose all required financial interests. This includes investments, income, loans, and gifts that meet the reporting thresholds.
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Providing vague descriptions for gifts or travel payments. Specific details are necessary to ensure proper reporting.
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Estimating the value of gifts incorrectly. A good faith estimate is required, and simply stating “over $50” is insufficient.
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Failing to report loans received or outstanding that total $500 or more. This includes loans from your spouse or registered domestic partner.
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Not verifying the accuracy of the information before signing the form. A thorough review is important to avoid errors.
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Missing the deadline for submission. Timely filing is essential to comply with reporting obligations.
Documents used along the form
The California 700 U form, known as the Statement of Economic Interests for Principal Investigators, is essential for individuals employed by the University of California (UC) or California State University (CSU) who are responsible for research projects funded by non-governmental entities. In addition to this form, there are several other documents that may be required to ensure compliance with reporting obligations. Below is a list of these documents, each described briefly.
- California Form 700: This is the primary Statement of Economic Interests that must be filed by public officials and designated employees to disclose their financial interests. It provides a broader overview compared to the 700 U form.
- FPPC Form 700-S: This form is used for the Statement of Economic Interests for candidates and officeholders. It is similar to the 700 form but tailored for those seeking or holding public office.
- Conflict of Interest Code: This document outlines the specific financial interests that must be disclosed by individuals in various positions within an agency or organization, ensuring transparency and accountability.
- Disclosure of Financial Interests: This is a general term referring to any document that requires individuals to report their financial interests, often mandated by state or federal law.
- Annual Financial Disclosure Statements: These statements are typically required on an annual basis and provide a comprehensive view of an individual’s financial activities and interests over the preceding year.
- Research Funding Agreements: These agreements outline the terms and conditions of funding provided for research projects. They often include clauses related to disclosure requirements and conflict of interest policies.
- Grant Applications: When applying for funding, researchers often need to submit detailed applications that include information about their financial interests and any potential conflicts of interest related to the proposed research.
Understanding these documents and their requirements is crucial for compliance with California’s regulations regarding financial disclosures. Failure to adhere to these requirements can result in significant penalties, including civil liability and university disciplinary actions. Therefore, it is imperative for researchers and public officials to remain informed and diligent in their reporting obligations.
Similar forms
The California Form 700-U is a specific document used by principal investigators at the University of California (UC) or California State University (CSU) to disclose financial interests related to research funding. Several other documents serve similar purposes in ensuring transparency and accountability regarding financial interests. Below are four such documents:
- California Form 700: This is the standard Statement of Economic Interests that must be filed by public officials and certain employees. Like Form 700-U, it requires disclosure of investments, income, and gifts, but it applies to a broader range of public officials beyond those involved in research projects.
- California Form 700-W: This form is specifically designed for lobbyists and requires them to disclose their financial interests and activities related to lobbying. Similar to Form 700-U, it emphasizes transparency regarding financial relationships, although it focuses on lobbying activities rather than research funding.
- California Form 460: This form is used for campaign finance reporting. Candidates and committees must disclose contributions and expenditures. Like the 700-U, it aims to provide transparency in financial dealings, but it is specifically tailored to political campaigns rather than research projects.
- California Form 496: This document is used to report independent expenditures in political campaigns. It shares similarities with Form 700-U in that both require detailed financial disclosures. However, Form 496 is focused on expenditures related to political activities rather than research funding.
Dos and Don'ts
When filling out the California 700 U form, it is essential to adhere to specific guidelines to ensure compliance and accuracy. Here are six important dos and don'ts:
- Do provide complete and accurate information about your financial interests, including investments, income, loans, and gifts.
- Do use clear and specific descriptions for any gifts or travel payments received, including their estimated fair market value.
- Do check the appropriate boxes to indicate whether the payments received were gifts or income, and report the amounts accurately.
- Do ensure that you file the form on time to avoid potential penalties or legal issues.
- Don't leave any sections blank; if a question does not apply, indicate that clearly instead of omitting it.
- Don't underestimate the value of gifts or report them as “value unknown” if you can make a good faith estimate.
Misconceptions
Understanding the California 700 U form can be challenging, and several misconceptions can lead to confusion. Here are seven common misconceptions about this form, along with clarifications:
- Only researchers at UC need to file the form. Many believe that only University of California (UC) researchers are required to complete the California 700 U form. In reality, employees from California State University (CSU) who have principal responsibility for a research project funded by a nongovernmental entity must also file.
- All gifts must be reported regardless of value. Some individuals think they must report every gift they receive. However, only gifts valued at $50 or more need to be disclosed on the form.
- Income from all sources is reportable. A common belief is that all income must be reported. In fact, only income received from specific sources, such as those associated with the research project, needs to be disclosed.
- Loans do not need to be reported if they are under $500. Many assume that loans below this threshold are exempt from reporting. However, any loan received or outstanding from a single lender totaling $500 or more must be reported.
- Travel payments are always considered gifts. Some people think that all travel payments must be reported as gifts. In truth, if services were provided that equaled or exceeded the value of the travel payments, they are classified as income, not gifts.
- Only financial interests held directly need to be reported. There is a misconception that only direct financial interests must be disclosed. In reality, indirect interests, such as those held by a spouse or registered domestic partner, also need to be reported if they meet the reporting thresholds.
- Failure to file the form has no serious consequences. Many believe that not filing the form is a minor issue. However, failing to file can lead to civil liability, fines, and even university disciplinary actions.
Being aware of these misconceptions can help ensure compliance with the requirements of the California 700 U form. Understanding the specific reporting obligations is essential for all individuals involved in research projects funded by nongovernmental entities.
Key takeaways
The California 700-U form is essential for individuals employed by the University of California (UC) or California State University (CSU) who lead research projects funded by non-governmental entities.
It is important to report any investments totaling $2,000 or more that you, your spouse, or your dependent children hold in the funding entity.
Income received from the entity must be reported if it exceeds $500 during the reporting period, including any community property interests.
Gifts valued at $50 or more must be disclosed, regardless of whether they were used or given away after acceptance.
Travel payments can be classified as either gifts or income, depending on whether services were provided in exchange for the payment.
Failure to file the form or report required financial interests can lead to civil penalties and university disciplinary actions.