Opinion No. (2006)

BILL LOCKYER Attorney General GREGORY L. GONOT Deputy Attorney General THE HONORABLE GEORGE A. PLESCIA, MEMBER OF THE STATE ASSEMBLY, has requested an opinion on the following questions: With respect to two affiliated limited partnerships, one of which has entered into a series of contracts with a hospital district to provide an ambulatory surgery center and the other leases land to the surgery center, and the district is the general partner in both partnerships and a limited partner in the surgery center partnership, and the individual retirement account of a newly elected district director's spouse holds a limited partnership interest in both affiliated partnerships, 1. May the hospital district enter into additional contracts with the affiliated partnerships, or renew existing ones, where (1) the limited partnership interests held in the spouse's individual retirement account represent less than 3 percent of the affiliated partnership interests, (2) the total distributions and other income from the affiliated partnerships do not exceed 5 percent of the total annual income of the director and her spouse, and (3) the district, as the general partner in both affiliated…