Public officers: contracts: financial interest.

Existing law prohibits Members of the Legislature, and state, county, district, judicial district, and city officers or employees from being financially interested in a contract, as specified, made by them in their official capacity or by any body or board of which they are members, subject to specified exceptions. Existing law identifies certain remote interests that are not subject to this prohibition if, among other things, the member or officer discloses the fact of that interest to the body or board, including, among others, that of a parent in the earnings of the parent's minor child for personal services. Existing law imposes a criminal penalty on every officer or person who willfully violates these provisions. This bill, on and after January 1, 2026, would include within the definition of remote interest that of a public officer if the public officer's child is an officer or director of, or has an ownership interest of 10% or more in, a party to a contract entered into by the body or board of which the officer is a member, if this information is actually known to the public officer. By expanding these provisions, this bill would create a new crime and thus would impose a state-mandated local program. 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.