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Under the Political Reform Act of 1974 (Government Code Sec. 81000 et seq.), no CSU employee shall make, participate in making, or attempt to use his or her official position to influence a CSU decision in which he or she has a financial interest. Willful violation is a misdemeanor.

An employee has a personal financial interest in a decision if the decision will have a material financial effect on the employee, a member of his or her immediate family, or on any one of the five kinds of economic interests (.doc, II,A,2b).

The Fair Political Practices Commission (FPPC), the agency assigned to administer and interpret the Political Reform Act, has provided an eight-step analysis (.doc, II,A,3) to determine when an employee has a conflict of interest that would require the employee to disqualify him or herself from the decision-making process.

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