Title 2 - Administration and Personnel

2.22.030 Substantial Interest Defined

1. A.
   "Substantial interest" means any of the following: (a) If an employee or an employee’s spouse, either individually or collectively, has owned within the preceding 12 months a legal or equitable interest exceeding $5,000 or 5% of any business, whichever is less, the employee has a substantial interest in that business.
2. B.
   If an employee or an employee's spouse, either individually or collectively, has received during the preceding calendar year compensation which is or will be required to be included as taxable income on federal income tax returns of the employee and spouse in an aggregate amount of $2,000 from any business or combination of businesses, the employee has a substantial interest in that business or combination of businesses.
3. C.
   If an employee or an employee's spouse, either individually or collectively, has received in the preceding 12 months, without reasonable and valuable consideration, goods or services having an aggregate value of $500 or more from a business or combination of businesses, the employee has a substantial interest in that business or combination of businesses.
4. D.
   If an employee or an employee's spouse holds the position of officer, director, associate, partner or proprietor of any business, other than an organization exempt from federal taxation of corporations under section 501(c)(3), (4), (6), (7), (8), (10) or (19) of Chapter 26 of the United States Code, the employee has a substantial interest in that business, irrespective of the amount of compensation received by the employee or employee’s spouse.
5. E.
   If an employee or an employee’s spouse receives compensation which is a portion or percentage of each separate fee or commission paid to a business or combination of businesses, the employee has a substantial interest in any client or customer who pays fees or commissions to the business or combination of businesses from which fees or commissions the employee or the employee's spouse, either individually or collectively, received an aggregate of $2,000 or more in the preceding calendar year.

(History: Ord. COE-1694 §3, 91)

Effective on: 1/1/1901