2.2-3106 - Prohibited contracts by officers and employees of state government and Eastern Virginia Medical School.
§ 2.2-3106. Prohibited contracts by officers and employees of stategovernment and Eastern Virginia Medical School.
A. No officer or employee of any governmental agency of state government orEastern Virginia Medical School shall have a personal interest in a contractwith the governmental agency of which he is an officer or employee, otherthan his own contract of employment.
B. No officer or employee of any governmental agency of state government orEastern Virginia Medical School shall have a personal interest in a contractwith any other governmental agency of state government unless such contractis (i) awarded as a result of competitive sealed bidding or competitivenegotiation as defined in § 2.2-4301 or (ii) is awarded after a finding, inwriting, by the administrative head of the governmental agency thatcompetitive bidding or negotiation is contrary to the best interest of thepublic.
C. The provisions of this section shall not apply to:
1. An employee's personal interest in additional contracts of employment withhis own governmental agency that accrue to him because of a member of hisimmediate family, provided the employee does not exercise any control overthe employment or the employment activities of the member of his immediatefamily and the employee is not in a position to influence those activities;
2. The personal interest of an officer or employee of a state institution ofhigher education or the Eastern Virginia Medical School in additionalcontracts of employment with his own governmental agency that accrue to himbecause of a member of his immediate family, provided (i) the officer oremployee and the immediate family member are engaged in teaching, research oradministrative support positions at the educational institution or theEastern Virginia Medical School, (ii) the governing board of the educationalinstitution finds that it is in the best interests of the institution or theEastern Virginia Medical School and the Commonwealth for such dual employmentto exist, and (iii) after such finding, the governing board of theeducational institution or the Eastern Virginia Medical School ensures thatthe officer or employee, or the immediate family member, does not have soleauthority to supervise, evaluate or make personnel decisions regarding theother;
3. An officer's or employee's personal interest in a contract of employmentwith any other governmental agency of state government;
4. Contracts for the sale by a governmental agency or the Eastern VirginiaMedical School of services or goods at uniform prices available to thegeneral public;
5. An employee's personal interest in a contract between a public institutionof higher education in Virginia or the Eastern Virginia Medical School and apublisher or wholesaler of textbooks or other educational materials forstudents, which accrues to him solely because he has authored or otherwisecreated such textbooks or materials;
6. An employee's personal interest in a contract with his or her employingpublic institution of higher education to acquire the collections orscholarly works owned by the employee, including manuscripts, musical scores,poetry, paintings, books or other materials, writings, or papers of anacademic, research, or cultural value to the institution, provided thepresident of the institution approves the acquisition of such collections orscholarly works as being in the best interests of the institution's publicmission of service, research, or education;
7. Subject to approval by the board of visitors, an employee's personalinterest in a contract between the Eastern Virginia Medical School or apublic institution of higher education in Virginia that operates a school ofmedicine or dentistry and a not-for-profit nonstock corporation that operatesa clinical practice within such public institution of higher education or theEastern Virginia Medical School and of which such employee is a member oremployee;
8. Subject to approval by the relevant board of visitors, an employee'spersonal interest in a contract for research and development orcommercialization of intellectual property between a public institution ofhigher education in Virginia or the Eastern Virginia Medical School and abusiness in which the employee has a personal interest, if (i) the employee'spersonal interest has been disclosed to and approved by such publicinstitution of higher education or the Eastern Virginia Medical School priorto the time at which the contract is entered into; (ii) the employee promptlyfiles a disclosure statement pursuant to § 2.2-3117 and thereafter files suchstatement annually on or before January 15; (iii) the institution hasestablished a formal policy regarding such contracts, approved by the StateCouncil of Higher Education or, in the case of the Eastern Virginia MedicalSchool, a formal policy regarding such contracts in conformity with anyapplicable federal regulations that has been approved by its board ofvisitors; and (iv) no later than December 31 of each year, the institution orthe Eastern Virginia Medical School files an annual report with the Secretaryof the Commonwealth disclosing each open contract entered into subject tothis provision, the names of the parties to each contract, the date eachcontract was executed and its term, the subject of each contractualarrangement, the nature of the conflict of interest, the institution's or theEastern Virginia Medical School's employee responsible for administering eachcontract, the details of the institution's or the Eastern Virginia MedicalSchool's commitment or investment of resources or finances for each contract,and any other information requested by the Secretary of the Commonwealth; or
9. Subject to approval by the relevant board of visitors, an employee'spersonal interest in a contract between a public institution of highereducation in Virginia or the Eastern Virginia Medical School and a businessin which the employee has a personal interest, if (i) the personal interesthas been disclosed to the institution or the Eastern Virginia Medical Schoolprior to the time the contract is entered into; (ii) the employee files adisclosure statement pursuant to § 2.2-3117 and thereafter annually on orbefore January 15; (iii) the employee does not participate in theinstitution's or the Eastern Virginia Medical School's decision to contract;(iv) the president of the institution or the Eastern Virginia Medical Schoolfinds and certifies in writing that the contract is for goods and servicesneeded for quality patient care, including related medical education orresearch, by the institution's medical center or the Eastern Virginia MedicalSchool, its affiliated teaching hospitals and other organizations necessaryfor the fulfillment of its mission, including the acquisition of drugs,therapies and medical technologies; and (v) no later than December 31 of eachyear, the institution or the Eastern Virginia Medical School files an annualreport with the Secretary of the Commonwealth disclosing each open contractentered subject to this provision, the names of the parties to each contract,the date each contract was executed and its term, the subject of eachcontractual arrangement, the nature of the conflict of interest, theinstitution's or the Eastern Virginia Medical School's employee responsiblefor administering each contract, the details of the institution's or theEastern Virginia Medical School's commitment or investment of resources orfinances for each contract, and any other information requested by theSecretary of the Commonwealth.
D. Notwithstanding the provisions of subdivisions C 8 and C 9, if theresearch and development or commercialization of intellectual property or theemployee's personal interest in a contract with a business is subject topolicies and regulations governing conflicts of interest promulgated by anyagency of the United States government, including the adoption of policiesrequiring the disclosure and management of such conflicts of interests, thepolicies established by the Eastern Virginia Medical School pursuant to suchfederal requirements shall constitute compliance with subdivisions C 8 and C9, upon notification by the Eastern Virginia Medical School to the Secretaryof the Commonwealth by January 31 of each year of evidence of theircompliance with such federal policies and regulations.
E. The board of visitors may delegate the authority granted under subdivisionC 8 to the president of the institution. If the board elects to delegate suchauthority, the board shall include this delegation of authority in the formalpolicy required by clause (iii) of subdivision C 8. In those instances wherethe board has delegated such authority, on or before December 1 of each year,the president of the relevant institution shall file a report with therelevant board of visitors disclosing each open contract entered into subjectto this provision, the names of the parties to each contract, the date eachcontract was executed and its term, the subject of each contractualarrangement, the nature of the conflict of interest, the institution's or theEastern Virginia Medical School's employee responsible for administering eachcontract, the details of the institution's or the Eastern Virginia MedicalSchool's commitment or investment of resources or finances for each contract,the details of how revenues are to be dispersed, and any other informationrequested by the board of visitors.
(1987, Sp. Sess., c. 1, § 2.1-639.6; 1989, c. 74; 1991, c. 470; 1993, c. 876;1995, c. 403; 1998, c. 838; 2001, c. 844; 2002, cc. 87, 478; 2003, c. 646;2006, c. 839.)