BILL NUMBER: AB 1678	CHAPTERED  07/12/07

	CHAPTER  68
	FILED WITH SECRETARY OF STATE  JULY 12, 2007
	APPROVED BY GOVERNOR  JULY 12, 2007
	PASSED THE SENATE  JUNE 28, 2007
	PASSED THE ASSEMBLY  MAY 17, 2007
	AMENDED IN ASSEMBLY  MAY 14, 2007
	AMENDED IN ASSEMBLY  MAY 3, 2007
	AMENDED IN ASSEMBLY  APRIL 9, 2007

INTRODUCED BY   Assembly Member De La Torre

                        FEBRUARY 23, 2007

   An act to amend Section 1092 of the Government Code, relating to
conflicts of interest.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1678, De La Torre. Public officials: conflicts of interest.
   Existing law provides that Members of the Legislature, and state,
county, district, judicial district, and county officers or employees
shall not be financially interested in any contract made by them in
their official capacity, or by any body or board of which they are
members. A contract made in violation of any of these provisions may
be avoided at the instance of any party except the officer interested
in the contract, and may not be avoided because of the interest of
an officer therein unless the contract is made in the official
capacity of the officer, or by a board or body of which the officer
is a member.
   This bill would provide that the applicable statute of limitations
for commencing an action under the provisions governing the
avoidance of contracts in violation of existing law is 4 years after
the plaintiff has discovered, or in the exercise of reasonable care
should have discovered, the violation.


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

  SECTION 1.  Section 1092 of the Government Code is amended to read:

   1092.  (a) Every contract made in violation of any of the
provisions of Section 1090 may be avoided at the instance of any
party except the officer interested therein. No such contract may be
avoided because of the interest of an officer therein unless the
contract is made in the official capacity of the officer, or by a
board or body of which he or she is a member.
   (b) An action under this section shall be commenced within four
years after the plaintiff has discovered, or in the exercise of
reasonable care should have discovered, a violation described in
subdivision (a).