California Welfare and Institutions Code § 14587

Welfare and Institutions Code
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No Medi-Cal certification for an adult day health center shall be approved or renewed if any state officer or employee has a direct financial interest in such a subcontractor. For the purposes of this section, “direct financial interest” means the ownership of common stock, preferred stock, warrants, options, partnership interests, and debt instruments if convertible to equity investments in a subcontractor specified in this section. A convertible debt includes bonds, notes, debentures, and mortages. As used in this section, “direct financial interest” also includes such financial interest of a spouse or a minor child of a state officer or employee in any business entity or in real property held for income or gain.

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