Opinion No. (2005)

BILL LOCKYER Attorney General SUSAN DUNCAN LEE Deputy Attorney General THE HONORABLE WILMA CHAN, MEMBER OF THE STATE ASSEMBLY, has requested an opinion on the following question: Is a person who was hired by a city as a consultant in the process of forming a business improvement district precluded from being hired after formation of the district by a nonprofit corporation that is under contract with the city to manage the district? CONCLUSION A person who was hired by a city as a consultant in the process of forming a business improvement district is not precluded from being hired after formation of the district by a nonprofit corporation that is under contract with the city to manage the district. ANALYSIS The question presented for resolution concerns a consultant who was hired by a city to work with business owners in the process of forming a special assessment district under the Property and Business Improvement District Law of 1994 (Sts. Hy. Code, §§ 36600-36671; "Act"). 1 After the district is formed, may the person be hired by a nonprofit corporation that is under contract with the city to manage the district? We conclude that the nonprofit corporation may hire…