Subject to certain exceptions, Members of the Legislature, and state, county, district, judicial district, and city officers and employees (Public Official(s)) are prohibited from being financially interested in a contract made by them in their official capacity or by any body or board of which they are members.
Certain remote interests, as defined in the Government Code, are not subject to this prohibition if the Public Official discloses the fact of that interest to the body or board of which the Public Official is a member, the same is noted in its official records, and the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the Public Official with the remote interest. The Government Code imposes a criminal penalty on every Public Official who willfully violates these provisions.
Senate Bill 1111 expands the definition of a Public Official’s remote interest. On or after January 1, 2026, a remote interest will also include a Public Official’s child that is an officer or director of, or has an ownership interest of ten percent (10%) or more in, a party to a contract entered into by the body or board of which the Public Official is a member, if this information is actually known to the Public Official.
(SB 1111 amends, repeals, and adds section 1091 of the Government Code)