BILL NUMBER: AB 850	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 5, 2009

INTRODUCED BY   Assembly Member De La Torre

                        FEBRUARY 26, 2009

   An act to amend Section 1090 of the Government Code, relating to
conflicts of interest.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 850, as amended, De La Torre. Conflicts of interest: contracts.

   (1) Existing law prohibits Members of the Legislature and state,
county, district, judicial district, and city officers or 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. A violation of this prohibition is a crime.
   This bill would  provide that in addition to the persons
stated above, a party to a contract that is in violation of this
prohibition is liable for a violation of this prohibition, including,
but not limited to, persons who participate in a conspiracy to
violate this prohibition.   additionally prohibit a
person from knowingly inducing another to, or participating in the
commission of, a violation of the existing prohibition,   or
conspiring in a violation of the existing prohibition.  This
bill would impose a state-mandated local program by creating a new
crime.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 1090 of the Government Code is amended to read:

   1090.  (a) Members of the Legislature, state, county, district,
judicial district, and city 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. Nor
shall state, county, district, judicial district, and city officers
or employees be purchasers at any sale or vendors at any purchase
made by them in their official capacity.
    (b) As used in this article, "district" means any agency of the
state formed pursuant to general law or special act, for the local
performance of governmental or proprietary functions within limited
boundaries. 
   (c) In addition to the persons listed in subdivision (a), a party
to a contract that is in violation of subdivision (a) is liable for a
violation of this section, including, but not limited to, persons
who participate in a conspiracy to violate this section.

   (c) No person shall knowingly induce another to, or participate in
the commission of, a violation of this section, or conspire with a
person subject to subdivision (a) to commit a violation of this
section. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.