Page 24 - Lozano Smith Board Member Toolkit 2026

Fair Process Laws
The public expects its elected officials to be impartial and avoid favoritism. Public
hearings must be conducted in accordance with due process principles.

Incompatible offices. Officials may not simultaneously hold two public offices.
Many offices are elected, but an "office" can include appointed positions as well. For
example, one cannot simultaneously serve as school board member and a member of
the city's planning commission. This rule applies only to positions of importance that
are considered offices; it does not apply to employment positions.

Incompatible activities. Public officials may not engage in any private employment or
activity for compensation that is inconsistent with or in conflict with their official
duties.

Competitive procurement in public contracting. Public contracting laws, which
require competitive bidding for public works projects and equipment or services, give
parties an opportunity to do business on an equitable basis. Inviting competition
guards against favoritism, fraud, and corruption, and may help secure the best work or
supplies at the lowest price.

Campaign Contribution and Pay-to-Play
The Political Reform Act has also has rules in place to prevent public officials from
being unfairly influenced by contributors to their campaign. These are often referred to
as “pay-to-play” rules. Government Code section 84308 prohibits a party seeking a
contract (other than a competitively bid contract), license, permit, or other entitlement
for use from making a contribution of more than $500 to an officer of a public agency,
as defined. An officer of an agency may not solicit, accept, or direct a contribution of
more than $500 from a party or participant to a proceeding, or his or her agent, while
the proceeding is pending and for twelve months after. And an officer of an agency
may not participate in such a proceeding if the officer has received a contribution of
more than $500 from a party, participant, or agent in the past 12 months.

There are some limits on the above pay-to-play rules. The following types of contracts
are exempted from the requirements of section 84308: competitively bid contracts
that are required to be awarded through a competitive process; labor contracts;
personal employment contracts; contracts valued under $50,000; contracts where no
party receives financial compensation; contracts between two or more public
agencies; and periodic review of development agreements that do not include material
changes.

Guide to Effective Governance 21