Conflicts of Interest in Contracting by California State Agencies
Any officer or employee in the state civil service is prohibited from contracting on his or her own individual behalf as an independent contractor with any state agency
By Chris Micheli, March 22, 2023 8:36 am
California’s Public Contract Code (PCC) provides conflict of interest laws in Article 8 of Chapter 2 of Part 2 of Division 2. Article 8 was added in 1983 by Chapter 1231.
PCC Section 10410 prohibits any officer or employee in the state civil service or other appointed state official from engaging in any employment, activity, or enterprise from which the officer or employee receives compensation or in which the officer or employee has a financial interest, and it is sponsored or funded by any state agency or department through or by a state contract. In addition, any officer or employee in the state civil service is prohibited from contracting on his or her own individual behalf as an independent contractor with any state agency to provide services or goods.
PCC Section 10411 prohibits any retired, dismissed, separated, or formerly employed person of any state agency or department employed under the state civil service or otherwise appointed to serve in state government from entering into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decisionmaking process relevant to the contract while employed in any capacity by any state agency or department.
This “revolving door” prohibition applies to a person only during the two-year period beginning on the date the person left state employment.
In addition, for a period of 12 months following the date of his or her retirement, dismissal, or separation from state service, no person employed under state civil service or otherwise appointed to serve in state government may enter into a contract with any state agency, if he or she was employed by that state agency in a policymaking position in the same general subject area as the proposed contract, with two specified exceptions.
PCC Section 10412 provides that each contractor who enters into a state contract with the state for $10,000 or more is to be assigned an identification number by the department. Each contractor who has been assigned a number is then required to list that number on each contract he or she enters into with the state, regardless of the amount of the contract.
PCC Section 10413 prohibits an employee or state officer from receiving compensation or having a financial interest for purposes of contracting or employment with another district agricultural association.
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2 thoughts on “Conflicts of Interest in Contracting by California State Agencies”
Newsom and other Democrats must be exempted from this section of California’s Public Contract Code because they violate it all the time? There’s no one to stop them?
Oh dear, whatever will retired engineers and environmentalists do after leaving DWR and the Water Boards if they can’t be consultants to the very agencies they retired from? It’s a long time established practice.