BILL NUMBER: AB 2366	CHAPTERED  09/18/02

	CHAPTER  654
	FILED WITH SECRETARY OF STATE  SEPTEMBER 18, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 17, 2002
	PASSED THE ASSEMBLY  AUGUST 28, 2002
	PASSED THE SENATE  AUGUST 27, 2002
	AMENDED IN SENATE  AUGUST 8, 2002
	AMENDED IN SENATE  JUNE 26, 2002
	AMENDED IN ASSEMBLY  APRIL 10, 2002

INTRODUCED BY   Assembly Member Dickerson
   (Coauthors:  Assembly Members Kelley and Wyman)
   (Coauthor:  Senator Chesbro)

                        FEBRUARY 21, 2002

   An act to amend Section 87103.5 of the Government Code, relating
to the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2366, Dickerson.  Political Reform Act of 1974:  conflicts of
interests.
   Under the existing Political Reform Act of 1974, a public official
at any level of state or local government may not make, participate
in making, or in any way attempt to use his or her official position
to influence a governmental decision in which he or she knows or has
reason to know he or she has a financial interest.  Existing law
states that a public official has a financial interest in a decision
if it is reasonably foreseeable that the decision will have a
material financial effect, distinguishable from its effect on the
public generally, on any source of income aggregating $500 or more in
value to the public official within 12 months prior to the time when
the decision is made.  Existing law, however, makes an exception to
this provision, and states that a retail customer of a business
entity engaged in retail sales of goods or services to the public
generally is not a source of income to an official who owns a
10-percent or greater interest in the entity if the retail customers
of the business entity constitute a significant segment of the public
generally, and the amount of income received by the business entity
from the customer is not distinguishable from the amount of income
received from its other retail customers.
   This bill would, with respect to a jurisdiction with a population
of 10,000 or less that is located in a county with 350 or fewer
retail businesses, instead apply the exception if the amount of
income received by the business entity from the customer does not
exceed one percent of the gross sales revenues of the business
entity, as specified.
   The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
with a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill, which would declare that it furthers the purposes of
the act, would therefore require a 2/3 vote.


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


  SECTION 1.  Section 87103.5 of the Government Code is amended to
read:
   87103.5.  (a) Notwithstanding subdivision (c) of Section 87103, a
retail customer of a business entity engaged in retail sales of goods
or services to the public generally is not a source of income to an
official who owns a 10-percent or greater interest in the entity if
the retail customers of the business entity constitute a significant
segment of the public generally, and the amount of income received by
the business entity from the customer is not distinguishable from
the amount of income received from its other retail customers.
   (b) Notwithstanding subdivision (c) of Section 87103, in a
jurisdiction with a population of 10,000 or less which is located in
a county with 350 or fewer retail businesses, a retail customer of a
business entity engaged in retail sales of goods or services to the
public generally is not a source of income to an official of that
jurisdiction who owns a 10-percent or greater interest in the entity,
if the retail customers of the business entity constitute a
significant segment of the public generally, and the amount of income
received by the business entity from the customer does not exceed
one percent of the gross sales revenues that the business entity
earned during the 12 months prior to the time the decision is made.
   (c) For the purposes of subdivision (b):
   (1) Population in a jurisdiction shall be established by the
United States Census.
   (2) The number of retail businesses in a county shall be
established by the previous quarter's Covered Employment and Wages
Report (ES-202) of the Labor Market Information Division of the
California Employment Development Department.
  SEC. 2.  The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the meaning
of subdivision (a) of Section 81012 of the Government Code.