BILL NUMBER: AB 1208	CHAPTERED  10/11/03

	CHAPTER  822
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2003
	APPROVED BY GOVERNOR  OCTOBER 10, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 11, 2003
	PASSED THE SENATE  SEPTEMBER 9, 2003
	AMENDED IN SENATE  SEPTEMBER 8, 2003
	AMENDED IN SENATE  JULY 10, 2003
	AMENDED IN SENATE  JUNE 11, 2003
	AMENDED IN ASSEMBLY  APRIL 22, 2003

INTRODUCED BY   Assembly Member Cogdill
   (Coauthors:  Assembly Members Benoit, Houston, Maze, and
Nakanishi)
   (Coauthors:  Senators Denham and Florez)

                        FEBRUARY 21, 2003

   An act to add Section 1091.4 to the Government Code, relating to
conflicts of interest.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1208, Cogdill.  Conflicts of interest.
   Existing law prohibits certain public officials and employees from
being financially interested in any contract made by them in their
official capacity, or by any board of which they are members.  An
officer is not deemed to be interested in a contract entered into by
a body or board of which the officer is a member if the officer has
only a remote interest in the contract and other requirements are
met.  A remote interest is required to be publicly disclosed, and
thereafter the public body may authorize, approve, or ratify the
contract in question, but the officer or employee with the remote
interest is disqualified from voting.
   This bill additionally would define as a remote interest that
interest of a person who has a financial interest in a contract, if
(1) the person is a board member of a special district serving a
population of less than 5,000 that is a landowner voter district, as
defined, that does not distribute water for any domestic use, (2) the
contract is for either the maintenance or repair of the district's
property or facilities, as specified, or the acquisition of property
for the district, and meets specified criteria, (3) the person did
not participate in the formulation of the contract on behalf of the
district, and (4) at a public meeting, the governing body of the
district, after review of written documentation, determines that the
property acquisition or maintenance and repair services cannot
otherwise be obtained at a reasonable price and that the contract is
in the best interests of the district, and adopts a resolution
stating why the contract is necessary and in the best interests of
the district.
   This bill also would provide that, if a party to any proceeding
challenges any fact or matter required to qualify as a remote
interest under these provisions relating to a special district, the
district shall bear the burden of proving this fact or matter.


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


  SECTION 1.  Section 1091.4 is added to the Government Code, to
read:
   1091.4.  (a) As used in Section 1091, "remote interest" also
includes a person who has a financial interest in a contract, if all
of the following conditions are met:
   (1) The agency of which the person is a board member is a special
district serving a population of less than 5,000 that is a landowner
voter district, as defined in Section 56050, that does not distribute
water for any domestic use.
   (2) The contract is for either of the following:
   (A) The maintenance or repair of the district's property or
facilities provided that the need for maintenance or repair services
has been widely advertised.  The contract will result in materially
less expense to the district than the expense that would have
resulted under reasonably available alternatives and review of those
alternatives is documented in records available for public
inspection.
   (B) The acquisition of property that the governing board of the
district has determined is necessary for the district to carry out
its functions at a price not exceeding the value of the property, as
determined in a record available for public inspection by an
appraiser who is a member of a recognized organization of appraisers.

   (3) The person did not participate in the formulation of the
contract on behalf of the district.
   (4) At a public meeting, the governing body of the district, after
review of written documentation, determines that the property
acquisition or maintenance and repair services cannot otherwise be
obtained at a reasonable price, that the contract is in the best
interests of the district, and adopts a resolution stating why the
contract is necessary and in the best interests of the district.
   (b) If a party to any proceeding challenges any fact or matter
required by paragraph (2), (3), or (4) of subdivision (a) to qualify
as a remote interest under subdivision (a), the district shall bear
the burden of proving this fact or matter.