BILL NUMBER: SB 1529	CHAPTERED  08/26/02

	CHAPTER  262
	FILED WITH SECRETARY OF STATE  AUGUST 26, 2002
	APPROVED BY GOVERNOR  AUGUST 24, 2002
	PASSED THE SENATE  AUGUST 8, 2002
	PASSED THE ASSEMBLY  JULY 3, 2002
	AMENDED IN ASSEMBLY  JUNE 18, 2002
	AMENDED IN ASSEMBLY  JUNE 5, 2002
	AMENDED IN SENATE  APRIL 4, 2002

INTRODUCED BY   Senator Johnson

                        FEBRUARY 20, 2002

   An act to amend Section 14087.57 of the Welfare and Institutions
Code, relating to conflict of interest, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1529, Johnson.  Conflicts of interest:  special commissions.
   Existing law establishes various programs to provide health care
services to persons with limited incomes and meeting various
eligibility requirements.  These programs include the Healthy
Families Program administered by the Managed Risk Medical Insurance
Board and the Medi-Cal program administered by the State Department
of Health Services.
   Existing law authorizes counties, pursuant to ordinance, to
establish a special commission in order to meet the problems of the
delivery of publicly assisted medical care and to negotiate a
contract to provide or arrange for the provision of health care
services, as specified.
   Existing law contains prohibitions against public officers being
financially interested in any contract made by them in their official
capacity or by any body or board of which they are members.
   Existing law specifies that a member of a commission or advisory
committee to the commission established pursuant to the authority
described above shall not be deemed to be interested in a contract
entered into by the commission if specified conditions apply, one of
which conditions is that the contract contain substantially the same
terms and conditions as contracts entered into with other individuals
or organizations that the member was appointed to represent.
   This bill would add an additional condition under which a member
of a commission or advisory committee described above shall not be
deemed to be interested in a contract entered into by the commission,
to provide that if the contract does not contain substantially the
same terms and conditions as contracts entered into with other
individuals or organizations that the member was appointed to
represent, the member shall recuse himself or herself from making,
participating in making, or in any way attempting to use his or her
official position to influence the making of, a decision on the
contract.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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


  SECTION 1.  Section 14087.57 of the Welfare and Institutions Code
is amended to read:
   14087.57.  Notwithstanding any provision of law, a member of a
commission authorized by Section 14087.51 or 14087.54, or a member of
any advisory committee to the commission, shall not be deemed to be
interested in a contract entered into by the commission within the
meaning of Article 4 (commencing with Section 1090) of Chapter 1 of
Division 4 of Title 1 of the Government Code if all of the following
apply:
   (a) The member was appointed to represent the interests of
physicians, health care practitioners, hospitals, pharmacies, or
other health care organizations.
   (b) The contract authorizes the member or the organization the
member represents to provide services under the commission's program.

   (c) (1) The contract contains substantially the same terms and
conditions as contracts entered into with other individuals or
organizations that the member was appointed to represent.
   (2) If the contract does not contain substantially the same terms
and conditions, the member shall recuse himself or herself from
making, participating in making, or in any way attempting to use his
or her official position to influence the making of, a decision on
the contract.
   (d) The member does not influence or attempt to influence the
commission or another member of the commission to enter into the
contract in which the member is interested.
   (e) The member discloses the interest to the commission and
abstains from voting on the contract.
   (f) The commission notes the member's disclosure and abstention in
its official records and authorizes the contract in good faith by a
vote of its membership sufficient for the purpose without counting
the vote of the interested member.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to permit persons in various business and professions to
be members of certain special health commissions and thereby
facilitate the work of those commissions, including managing the
delivery of Medi-Cal services, at the earliest possible time, it is
necessary that this act take effect immediately.