Existing law provides that Members of the Legislature, and state, county, district, judicial district, and county officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. A contract made in violation of any of these provisions may be avoided at the instance of any party except the officer interested in the contract, and may not be avoided because of the interest of an officer therein unless the contract is made in the official capacity of the officer, or by a board or body of which the officer is a member.
This bill would provide that the applicable statute of limitations for commencing an action under the provisions governing the avoidance of contracts in violation of existing law is 4 years after the plaintiff has discovered, or in the exercise of reasonable care should have discovered, the violation.