09/19/2022 Update
CONFLICT OF INTEREST CODE
OF THE
BARSTOW FIRE PROTECTION DISTRICT
[All amendments or changes to the provisions of the Political Reform Act of 1974 and the FPPC Regulations effective through December 31, 20 have been incorporated into this Code and its Addendum.] i
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TABLE OF CONTENTS
Section A. Statement of Purpose. ...............................................................................- 1 - Section B. Definition of Terms.....................................................................................- 1 -
1. Definitions..................................................................................................- 1 - Section C. Disclosure Statements...............................................................................- 1 -
1. Designated Employees..............................................................................- 1 - Section D. Disclosure Categories................................................................................- 1 - Section E. Statements of Economic Interests: Place of Filing. ....................................- 2 - Section F. Statements of Economic Interests: Time of Filing and Contents of Filing. .- 2 -
1. Initial Statements. ......................................................................................- 3 -
2. Assuming Office Statements......................................................................- 3 -
3. Annual Statements. ...................................................................................- 3 -
4. Leaving Office Statements.........................................................................- 3 -
5. Statements for Persons Who Resign Prior to Assuming Office. ................- 3 -
6. Forms for Statements. ...............................................................................- 4 - Section G. Manner of Reporting..................................................................................- 4 -
1. Contents of Reports of Investments and Interests in Real Property. .........- 4 -
2. Contents of Reports of Personal Income. ..................................................- 5 -
3. Contents of Reports of Business Entity Income.........................................- 5 -
4. Contents of Reports of Business Position Disclosure. ...............................- 6 -
5. Acquisition or Disposal During Reporting Period. ......................................- 6 - Section H. Honoraria and Gifts....................................................................................- 6 -
1. Prohibition on Receipt of Honoraria. ..........................................................- 6 -
2. Prohibition on Receipt of Gifts. ..................................................................- 6 - ii
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Section I. Loans. .........................................................................................................- 7 -
1. Loans to Public Officials.............................................................................- 7 -
2. Loan Terms................................................................................................- 8 -
3. Personal Loans..........................................................................................- 9 - Section J. Disqualification. ........................................................................................- 10 -
1. Disqualification Requirements. ................................................................- 10 -
2. Disclosure of Disqualifying Interest..........................................................- 10 -
3. Rights as Citizen......................................................................................- 10 -
4. Legally Required Participation. ................................................................- 11 - Section K. Opinions of the Commission and Counsel. ..............................................- 11 -
1. Request for Opinion and Reliance. ..........................................................- 11 -
2. Evidence of Good Faith. ..........................................................................- 11 - Section L. Legislative or Judicial Amendments. ........................................................- 11 -
1. Automatic Amendment of Code. ..............................................................- 11 - Section M. Force and Effect of Code.........................................................................- 12 -
1. Violations. ................................................................................................- 12 - APPENDIX A................................................................................................................... 1 APPENDIX B................................................................................................................... 2 - 1 -
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CONFLICT OF INTEREST CODE
OF THE
BARSTOW FIRE PROTECTION DISTRICT
Section A. Statement of Purpose.
It is the purpose of this Code to provide for the disclosure of Designated Employees’ assets and income which may be materially affected by their official actions, and, in appropriate circumstances, to provide that Designated Employees should be disqualified from acting in order that conflicts of interest may be avoided. Nothing contained herein is intended to modify or abridge the provisions of the Political Reform Act of 1974 (Government Code Sections 81000 et seq.). The requirements of this Code are in addition to other requirements of the Political Reform Act and to other state or local laws pertaining to conflicts of interest. [Gov. Code § 81002(c); 2 Cal. Code of Regs. § 18730(a)]
Section B. Definition of Terms.
1. Definitions. The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. § 18110, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code.
Section C. Disclosure Statements.
1. Designated Employees. The persons holding positions listed in Appendix A of this Code are “Designated Employees.” It has been determined that these officers and employees make or participate in the making of decisions which may foreseeably have a material effect on economic interests.
Section D. Disclosure Categories.
This code does not establish any disclosure obligation for those designated employees K
-
D
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who are also specified in Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Sections 87200, et seq. In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply:
(A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency;
(B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Section 87200; and
(C) The filing officer is the same for both agencies.1
Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in Appendix B specify which kinds of economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the types of investments, interests in real property, business positions, income, and sources of income assigned to each Designated Employee in Exhibit “A” of the Appendix are of the type that may be affected materially by decisions made or participated in by the Designated Employee by virtue of his or her position and are reportable.
Section E. Statements of Economic Interests: Place of Filing.
All Officials and Designated Employees required to submit a statement of economic interests shall file the original with the District’s filing officer. The filing officer shall make and retain a copy of all statements filed by officials who manage public investments, and forward the originals of such statements to the Fair Political Practices Commission.
The filing officer shall retain the originals of the statements of all other Designated Employees.
Section F. Statements of Economic Interests: Time of Filing and
1 Designated employees who are required to file statements of economic interests under any other agency's conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as if it were an original. (See Gov’t Code, § 81004.)
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Contents of Filing.
1. Initial Statements. All Designated Employees employed on the effective date of this Code, as originally adopted, promulgated and approved by the codereviewing body, shall file statements within 30 days after the effective date of this Code. Thereafter, each person already in a position when it is designated by an amendment to this Code shall file an initial statement within 30 days after the effective date of the amendment. Initial statements shall disclose any reportable investments, interests in real property, and business positions held on the effective date of this Code, and income, including gifts and loans, received during the 12 months prior to the effective date of this Code.
2. Assuming Office Statements. All persons who are elected, appointed, promoted or transferred to a designated position after the effective date of this Code shall file statements within 30 days after assuming the designated position, disclosing any reportable investments, interests in real property, and business positions held on the date of assuming office, and income, including gifts and loans, received during the 12 months prior to the date of assuming office.
3. Annual Statements. Annual statements shall be filed by all Designated Employees on or before April 1 of each year, disclosing any reportable investments, interests in real property, business positions and income held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the Code or the date of assuming office, whichever is later. If a person reports for military service as defined in the Servicemember's Civil Relief Act, the deadline for the annual statement of economic interests is 30 days following his or her return to office, provided the person, or someone authorized to represent the person's interests, notifies the filing officer in writing prior to the applicable filing deadline that he or she is subject to that federal statute and is unable to meet the applicable deadline, and provides the filing officer verification of his or her military status.
4. Leaving Office Statements. Every Designated Employee who leaves office and does not assume another designated position for the District shall file a statement within 30 days after leaving office, disclosing any reportable investments, interests in real property, business positions and income held or received during the period between the closing date of the last statement filed and the date of leaving office.
5. Statements for Persons Who Resign Prior to Assuming Office. Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or - 4 -
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her appointment. Such persons shall not file either an assuming or leaving office statement.
(a) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following:
(1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making or use the position to influence any decision of the District, or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position.
6. Forms for Statements. Statements for disclosing economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the District’s filing officer.
Section G. Manner of Reporting.
1. Contents of Reports of Investments and Interests in Real Property.
Investments and interests in real property which have a fair market value of less than two thousand dollars ($2,000) are not investments and interests in real property within the meaning of the Political Reform Act.
Investments or interests in real property of an individual include those held by the individual’s spouse, including registered domestic partner2(“spouse”), and dependent children, as well as the pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10% or greater.
When an investment or interest in real property3is required to be reported under this Code, the statement shall contain the following:
(a) A statement of the nature of the investment or interest;
2 The term “spouse” shall include domestic partners registered with the California Secretary of State’s Office and recognized by California State Law. (2 Cal. Code of Regs. § 18229; Fam. Code § 297.) 3 For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. (Gov. Code §§ 87302(b), 87206(f); 2 Cal. Code of Regs. § 18730(b)(7)(A), n 3.)
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(b) The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; (c) The address or other precise location of the real property; (d) A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000).
2. Contents of Reports of Personal Income. Personal income of a Designated Employee includes his or her own income as well as his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, federal or local government agency.
When personal income is required to be reported under this Code, the statement shall contain:
(a) The name and address of each source of income aggregating five hundred dollars ($500) or more in value per year, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source;
(b) A statement whether the aggregate value of the income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000); (c) A description of the consideration, if any, for which the income was received;
(d) In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received; (e) In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan.
3. Contents of Reports of Business Entity Income. Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10% or greater interest. The disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. - 6 -
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When income of a business entity, including income of a sole proprietorship, is required to be reported under this Code, the statement shall contain:
(a) The name, address and a general description of the business activity of the business entity; and
(b) The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
4. Contents of Reports of Business Position Disclosure. When business positions are required to be reported, a Designated Employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the Designated Employee’s position with the business entity.
5. Acquisition or Disposal During Reporting Period. In the case of an annual statement or a leaving office statement, the statement shall include any investments or interests in real property that was partially or wholly acquired or disposed of at any time during the period covered by the statement, whether or not they are still held at the time of filing, and shall contain the date of acquisition or disposal.
Section H. Honoraria and Gifts.
1. Prohibition on Receipt of Honoraria. No Designated Employee shall accept any honorarium from any source if he or she would be required to report the receipt of income or gifts from that source on his or her statement of economic interests.
This Section does not limit or prohibit payments, advances, or reimbursements for travel, including actual transportation and related lodging and subsistence which is reasonably related to a governmental purpose as specified in Government Code section 89506.
Subdivisions (a), (b), and (c) of Section 89501 shall apply to the prohibitions in this section.
2. Prohibition on Receipt of Gifts. No Designated Employee shall accept gifts with a total value of more than five hundred and twenty dollars ($520) 4 in a calendar
4 Beginning January 1, 1993, the FPPC shall adjust the gift limitation in this section on January 1 of each odd-numbered year to reflect changes in the Consumer Price Index, rounded to the nearest ten dollars ($10.) (Gov. Code § 89503(f).)
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year from any single source, if he or she would be required to report the receipt of income or gifts from that source on his or her statement of economic interests.
This Section does not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence permitted by Government Code section 89506; or any gift that is permissible under the regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. § 18110, et seq.).
Subdivisions (a), (b), and (c) of Section 89501 shall apply to the prohibitions in this section.
Section I. Loans.
1. Loans to Public Officials.
(a) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer’s agency has direction and control.
(b) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(c) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. (d) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card - 8 -
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transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (e) This Section shall not apply to the following:
(1) Loans made to the campaign committee of an elected officer or candidate for elective office.
(2) Loans made to the public official by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this Section.
(3) Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time.
(4) Loans made, or offered in writing, before January 1, 1998.
2. Loan Terms.
(a) Except as set forth in Subsection (b), below, no elected officer shall, from the date of his or her election to office, while he or she holds office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan.
(b) This Section shall not apply to the following types of loans:
(1) Loans made to the campaign committee of an elected officer. (2) Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this Section.
(3) Loans made, or offered in writing, before January 1, 1998. (c) Nothing in this Section shall exempt any person from any other provision - 9 -
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of this Code or the Act.
3. Personal Loans. Except as set forth in Subsection (c), below, a personal loan received by any Designated Employee shall become a gift to the Designated Employee for the purposes of this Code in the following circumstances:
(a) If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. (b) If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
(1) The date the loan was made.
(2) The date the last payment of one hundred dollars ($100) or more was made on the loan.
(3) The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months.
(c) This Section shall not apply in the following types of loans:
(1) A loan made to the campaign committee of an elected officer or a candidate for elective office.
(2) A loan that would otherwise not be a gift under the Act. (3) A loan that would otherwise be a gift as set forth in this Section, but on which the creditor has taken reasonable action to collect the balance due.
(4) A loan that would otherwise be a gift as set forth in this Section, but on which the creditor, based on reasonable business
considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this subsection has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.
(5) A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
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(d) Nothing in this Section shall exempt any person from any other provision of this Code or the Act.
Section J. Disqualification.
1. Disqualification Requirements. No Designated Employee shall make, participate in the making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family, or on:
(a) Any business entity in which the Designated Employee has a direct or indirect investment worth two thousand dollars ($2,000) or more; (b) Any real property in which the Designated Employee has a direct or indirect interest worth two thousand dollars ($2,000) or more; (c) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating five hundred dollars ($500) or more in value provided to, received by, or promised to the Designated Employee within 12 months prior to the time when the decision is made;
(d) Any business entity in which the Designated Employee is a director, officer, partner, trustee, employee, or holds any position of management; or (e) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating five hundred and twenty dollars) ($520) or more in value provided to, received by, or promised to the Designated Employee within 12 months prior to the time when the decision is made.
2. Disclosure of Disqualifying Interest. When a Designated Employee determines that he or she has a disqualifying interest in a decision, the determination not to act may be accompanied by disclosure of the disqualifying interest. Officials specified in Government Code section 87200, including officials who manage the investment of public funds, must identify conflicts of interests pursuant to 2 Cal. Code of Regs. (Gov’t Code, § 18702.5.)
3. Rights as Citizen. Nothing contained herein shall abridge the right of any Designated Employee to contact the District to submit information or express views in the same manner as any other member of the general public before the District in its prescribed governmental function solely to represent himself or herself on a matter relating to his or her personal interests. An Official’s “personal interests” include, but are - 11 -
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not limited to:
(a) An interest in real property which is wholly owned by the official or members of his or her immediate family;
(b) A business entity wholly owned by the official or members of his or her immediate family;
(c) A business over which the official exercises sole direction and control, or over which the official and his or her spouse jointly exercise sole direction and control.
Nothing contained herein shall be construed to abridge the right of any Designated Employee to communicate with the general public or with the press.
4. Legally Required Participation. This Code does not prevent a Designated Employee from making or participating in the making of any governmental decision to the extent that his or her participation is legally required for the decision to be made. The fact that the vote of a Designated Employee who is on a voting body is needed to break a tie does not make his or her participation legally required for the purposes of this Section. The Attorney for the District shall advise any Designated Employee on a case-by-case basis whether or not the “Rule of Necessity” is applicable.
Section K. Opinions of the Commission and Counsel.
1. Request for Opinion and Reliance. Any Designated Employee who is unsure of any duty, right, or privilege of participation in any matter under this Code or under the provisions of the Political Reform Act of 1974 may request assistance from the Fair Political Practices Commission or an opinion from the Attorney for the District.
Nothing in this Section shall require the Attorney for the District to issue any formal or informal opinion.
2. Evidence of Good Faith. If an opinion is rendered by the Attorney for the District or the Fair Political Practices Commission stating in full the facts and law upon which the opinion is based, compliance therewith by the Designated Employee is evidence of good faith in any criminal proceeding and is a presumption affecting the burden of proof of any civil proceeding brought under the Act or this Code. The Designated Employee’s good faith compliance with such opinion shall also constitute a complete defense to any disciplinary action brought by the District under Section 91003.5 of the Act or this Code.
Section L. Legislative or Judicial Amendments.
1. Automatic Amendment of Code. All amendments or changes to the provisions of the Political Reform Act of 1974, occurring as the result of legislative - 12 -
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amendment or judicial decision only, shall automatically and immediately be incorporated into this Code and this Code shall, without further action, thereupon be deemed amended and changed to reflect such legislative or judicial amendment or decision.
Section M. Force and Effect of Code.
1. Violations. This Code has the force and effect of law. Designated Employees violating any provision of this Code are subject to the administrative, criminal and civil sanctions provided by the Political Reform Act of 1974, Government Code sections 81000 et seq. Additionally, a decision in relation to which a violation of the disqualification provisions of this Code or Government Code section 87100 has occurred may be set aside as void pursuant to Government Code section 91003.
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APPENDIX ‘A’
POSITIONS REQUIRED TO REPORT PURSUANT TO
2 CAL. CODE OF REGS. § 18723
The Members of the Barstow Fire Protection District Board of Directors, the Executive Administrator, the Attorney for the District, the Treasurer of the District, and All Other District Officials who manage public investments are included in and governed by the Conflict of Interest Code only with respect to disqualification provisions. For purposes of disclosure, the Members of the Barstow Fire Protection District Board of Directors, the Executive Administrator, the Attorney for the District, the Treasurer of the District, and All Other District Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18720, are subject to the statutory conflict of interest provisions of Article 2 of Chapter 7 of the Political Reform Act of 1974 (Government Code Section 87200 et seq.) and must file Form 700 Statements of Economic Interest. [Reg. § 18730(b)(3)]. It has been determined that the District Finance Director manages public investments and is therefore also required to file Statements of Economic Interests pursuant to Government Code Section 87200.
DESIGNATED POSITIONS DISCLOSURE CATEGORIES
ASSIGNED
Fire Chief 1, 2, 3
Battalion Chief 1, 2, 3
Assistant Fire Chief 1, 2, 4
Captain(s) 4, 5
Finance Director
District Administrator
1, 2, 3
1, 2, 3
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APPENDIX ‘B’
DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property, which the designated employee must disclose for each disclosure category to which he or she is assigned.
Category 1: All investments and business positions in, and sources of income from, business entities that do business with the City or own real property within the boundaries of the City, plan to do business with or own real property within the boundaries of the City within the next year, or have done business with or owned real property within the boundaries of the City within the past two (2) years.
Category 2: All interests in real property which are located in whole or in part within, or not more than two (2) miles outside, the boundaries of the City.
Category 3: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City.
Category 4: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Designated Employee's Department.
Category 5: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit or licensing authority of the Designated Employee's Department, will be subject to such authority within the next year or have been subject to such authority within the past two (2) years.