BILL NUMBER: AB 735	CHAPTERED  07/25/01

	CHAPTER  101
	FILED WITH SECRETARY OF STATE  JULY 25, 2001
	APPROVED BY GOVERNOR  JULY 25, 2001
	PASSED THE SENATE  JULY 12, 2001
	PASSED THE ASSEMBLY  MAY 10, 2001
	AMENDED IN ASSEMBLY  APRIL 3, 2001

INTRODUCED BY   Assembly Member Chan
   (Coauthor:  Senator Ackerman)

                        FEBRUARY 22, 2001

   An act to add Section 1091.3 to the Government Code, relating to
children and families programs.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 735, Chan.  Conflicts of interest.
   The California Children and Families Act of 1998 requires that the
California Children and Families Program, established by the act, be
funded by certain surtaxes imposed on the sale and distribution of
cigarettes and tobacco products and deposited into the California
Children and Families Trust Fund Account, and that the fund be used
for the implementation of comprehensive early childhood development
and smoking prevention programs.  Existing law establishes a state
commission, the California Children and Families Commission, with
specified powers and duties and also requires that funds in the
account be distributed by the commission to those counties that elect
to participate in the program by creating county commissions and
meeting other criteria.
   Existing law prohibits certain state and local officers and
employees from being financially interested in any contract made by
them in their official capacity, or by any body or board of which
they are members, and prohibits any state, county, district, judicial
district, and city officers or employees from being purchasers at
any sale or vendors at any purchase made by them in their official
capacity.
   This bill would specify that this prohibition does not apply to
any contract or grant made by local children and families commissions
created pursuant to the California Children and Families Act of
1998, except in certain circumstances.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1091.3 is added to the Government Code, to
read:
   1091.3.  Section 1090 shall not apply to any contract or grant
made by a county children and families commission, created pursuant
to the California Children and Families Act of 1998, (Division 108
(commencing with Section 130100) Health and Safety Code) except where
both of the following conditions are met:
   (a) The contract or grant directly relates to services to be
provided by any member of a county children and families commission
or the entity the member represents or financially benefits the
member or the entity he or she represents.
   (b) The member fails to recuse himself or herself from making,
participating in making, or in any way attempting to use his or her
official position to influence a decision on the grant or grants.