PROCESSES AND REMEDIES FOR PUBLIC INTEGRITY LAW VIOLATIONS: PART II. GOVERNMENT CODE SECTION 1090

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BEST BEST & KRIEGER ATTORNEYS AT LAW MEMORANDUM To: PUBLIC AGENCY CLIENTS From: BEST BEST & KRIEGER LLP Date: MAY 18, 2018 Re: PROCESSES AND REMEDIES FOR PUBLIC INTEGRITY LAW VIOLATIONS: PART II. GOVERNMENT CODE SECTION 1090 INTRODUCTION This memo is Part II of a three part series addressing processes and remedies for the violation of public integrity laws. Part I covered the Political Reform Act. This memo discusses the processes available for the investigation and determination of alleged violations of Government Code section 1090, and the remedies available therefor. In most situations, there may be more than one process available, and multiple "remedies" or penalties might apply in the case of a single violation. The aim is to inform the reader where complaints can be lodged, how they are handled and what remedies might result. In Part III, we will discuss processes and remedies that apply to the state's transparency laws, the Brown Act Open Meetings Law and the Public Records Act. GOVERNMENT CODE SECTION 1090 Government Code section 1090 prohibits any member of board or council, officers, and employees (and some consultants) from "making" a contract in their official capacity in which they are "financially interested." The law's prohibition acts on the entire governing body and the agency, itself, when a board or council member has a disqualifying "financial interest" in a contract. Thus, when a single member of a board or council is financially interested in a contract, the entire board (the public entity, itself) may not make the contract, subject to statutory exceptions. When officers, employees and consultants are financially interested in a contract they must recuse from the contracting process and cannot benefit from it. Contracts made in violation of the statute This product provided under the Public Policy & Ethics Group Program 93939.0020E\31 06757 1.1 -1-