Government Code Section 10410 - Contractual Conflicts of Interest: State Contracts Only

What is Public Contract Code Section 10410?

Public Contract Code section 10410 imposes additional conflict-of-interest restrictions concerning state contracts and contractors. This section contains two separate prohibitions. First, there is a general ban on state officers and employees from having economic interests in state contracts. Second, there is a separate ban against state officers and employees acting as independent contractors with state agencies.

Violations void the contract and can result in criminal penalties or civil remedies.

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The General Ban is Very Broad

Reduced to its essentials, the general ban provides that no state officer or employee shall do the following:

• engage in any employment, activity or enterprise;
• from which the officer or employee receives compensation, or in which he or she has a financial interest; and
• that is sponsored or funded, in whole or in part, by any state agency or department through a contract.

An exception is provided for unsalaried part-time members of boards and commissions. A variety of other specific exceptions are set forth in the law.

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Ban on Independent Contracting

In addition to the general prohibition, section 10410 specifically prohibits a state officer or employee from contracting on his or her own behalf with a state agency as an independent contractor to provide goods or services.

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Ban on Consultants’ Additional Contracts

In addition to the general prohibition, Public Contract Code section 10365.5 specifically prohibits any outside consultant from bidding on or being awarded a contract for services, goods or supplies or any related action that is required, suggested or otherwise deemed appropriate in the end product of their original consulting contract. Limited exceptions apply.

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You have completed the "Contractual Conflicts of Interest: State Contracts Only" module. The next module is Code of Ethics.

presented by
The California Attorney General's Office and the Fair Political Practices Commission