Opinion No. (2006)

BILL LOCKYER Attorney General DANIEL G. STONE Deputy Attorney General. THE HONORABLE GEORGE RUNNER, MEMBER OF THE STATE SENATE, has requested an opinion on the following question: May a city council donate public funds to a chamber of commerce, operating as a nonprofit corporation, if a council member is the president of the chamber and his spouse is an employee of the chamber? CONCLUSION A city council may donate public funds to a chamber of commerce, operating as a nonprofit corporation, even though a council member is the president of the chamber and his spouse is an employee of the chamber, provided that the council member discloses to the city council his financial interest in the donation, the interest is noted in the city council's official records, and the council member does not participate in the making of the donation. ANALYSIS We are informed that a city council intends to make a contribution of city funds to a chamber of commerce ("chamber"), a registered nonprofit corporation, having two ties to the city council: a council member serves as the chamber's president, and the council member's spouse is an employee of the chamber. May the contribution be made under these…