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HomePublic Utilities CodeDiv. 7Ch. 3Art. 3§ 16043 Conflict Of Interest Ban

§ 16043 Conflict Of Interest Ban

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16043 Conflict Of Interest Ban

Key Takeaways

  • •If you're a boss or leader in a special district (like water or school district), you can't make money from deals the district makes.
  • •You can't even secretly help a friend or family member get a deal with the district if you get something out of it.
  • •If you break this rule, you can get in big trouble: lose your job, pay up to $1,000, or even go to jail for up to 6 months.

Example

A school board member secretly owns a company that sells computers. The school board picks that company to sell computers to all the schools.

This is breaking the rule because the board member is making money from a deal they helped the school make. They could lose their job, pay a fine, or go to jail.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16043 Conflict Of Interest Ban

No director or other officer of the district shall in any manner be interested, directly or indirectly, in any contract awarded or to be awarded by the board, or in the profits to be derived from it. Violation of this section is a misdemeanor and a director or officer convicted shall forfeit his office, and shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in the county jail not exceeding six months, or by both such fine and imprisonment. (Amended by Stats. 1983, Ch. 1092, Sec. 363. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)

Last verified: January 23, 2026

Key Terms

directorofficercontractmisdemeanorforfeit his office

Related Statutes

  • § 24864 Director Recall Procedures
  • § 28760 Director Oath Requirement
  • § 28774 Director Oath Administration
  • § 30250 Director Oath Requirements
  • § 30253 Board Contracting Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 16043.
View Official Source