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2015 SESSION
15101723DBe it enacted by the General Assembly of Virginia:
1. That § 2.2-3109 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered 2.2-3109.1 as follows:
§ 2.2-3109. Prohibited contracts by other officers and employees of local governmental agencies.
A. No other officer or employee of any governmental agency of local government, including a hospital authority as defined in § 2.2-3109.1, shall have a personal interest in a contract with the agency of which he is an officer or employee other than his own contract of employment.
B. No officer or employee of any governmental agency of local
government, including a hospital authority as defined in § 2.2-3109.1,
shall have a personal interest in a contract with any other governmental agency
that is a component of the government of his county, city or town unless such
contract is (i) awarded as a result of competitive sealed bidding or
competitive negotiation as set forth in § 2.2-4302.1 or 2.2-4302.2 or is
awarded as a result of a procedure embodying competitive principles as
authorized by subdivisions subdivision A 10 or A 11 of §
2.2-4343 or (ii) is awarded after a finding, in writing, by the administrative
head of the governmental agency that competitive bidding or negotiation is
contrary to the best interest of the public.
C. The provisions of this section shall not apply to:
1. An employee's personal interest in additional contracts for goods or services, or contracts of employment with his own governmental agency that accrue to him because of a member of his immediate family, provided the employee does not exercise any control over (i) the employment or the employment activities of the member of his immediate family and (ii) the employee is not in a position to influence those activities or the award of the contract for goods or services;
2. An officer's or employee's personal interest in a contract of employment with any other governmental agency that is a component part of the government of his county, city or town;
3. Contracts for the sale by a governmental agency of services or goods at uniform prices available to the general public;
4. Members of local governing bodies who are subject to § 2.2-3107;
5. Members of local school boards who are subject to § 2.2-3108; or
6. Any ownership or financial interest of members of the governing body, administrators, and other personnel serving in a public charter school in renovating, lending, granting, or leasing public charter school facilities, as the case may be, provided such interest has been disclosed in the public charter school application as required by § 22.1-212.8.
§ 2.2-3109.1. Prohibited contracts; additional exclusions for contracts by officers and employees of hospital authorities.
A. As used in this section, "hospital authority" means a hospital authority established pursuant to Chapter 53 (§ 15.2-5300 et seq.) of Title 15.2.
B. The provisions of § 2.2-3109 shall not apply to:
1. The personal interest of an officer or employee of a hospital authority in additional contracts of employment with his own governmental agency that accrue to him because of a member of his immediate family, provided (i) the officer or employee and the immediate family member are licensed members of the medical profession or hold administrative support positions at the hospital authority, (ii) the governing board of the hospital authority finds that it is in the best interests of the hospital authority and the county, city, or town for such dual employment to exist, and (iii) after such finding, the governing board of the hospital authority ensures that neither the officer or employee, nor the immediate family member, has sole authority to supervise, evaluate, or make personnel decisions regarding the other;
2. Subject to approval by the governing board of the hospital authority, an officer or employee's personal interest in a contract between his hospital authority and a professional entity that operates a clinical practice at any medical facilities of such other hospital authority and of which such officer or employee is a member or employee;
3. Subject to approval by the relevant governing body, an
officer or employee's personal interest in a contract for research and
development or commercialization of intellectual property between the hospital
authority and a business in which the employee has a personal interest,
provided (i) the officer or employee's personal interest has been disclosed to
and approved by the hospital authority prior to the time at which the contract
is entered into; (ii) the officer or employee promptly files a disclosure
statement pursuant to § 2.2-3117 and thereafter files such statement annually
on or before [ January December
] 15; (iii) the local hospital authority has established a formal
policy regarding such contracts in conformity with any applicable federal
regulations that has been approved by its governing body; and (iv) no later
than December 31 of each year, the local hospital authority files an annual
report with the Virginia Conflict of Interest and Ethics Advisory Council
disclosing each open contract entered into subject to this provision, the names
of the parties to each contract, the date each contract was executed and its
term, the subject of each contractual arrangement, the nature of the conflict
of interest, the hospital authority's employee responsible for administering
each contract, the details of such hospital authority's commitment or
investment of resources or finances for each contract, and any other information
requested by the Virginia Conflict of Interest and Ethics Advisory Council; or
4. Subject to approval by the relevant governing body, an
officer or employee's personal interest in a contract between the hospital
authority and a business in which the officer or employee has a personal
interest, provided (i) the personal interest has been disclosed to the hospital
authority prior to the time the contract is entered into; (ii) the officer or
employee files a disclosure statement pursuant to § 2.2-3117 and thereafter
annually on or before [ January December
] 15; (iii) the officer or employee does not participate in the
hospital authority's decision to contract; (iv) the president or chief
executive officer of the hospital authority finds and certifies in writing that
the contract is for goods and services needed for quality patient care,
including related medical education or research, by any of the hospital
authority's medical facilities or any of its affiliated organizations, or is
otherwise necessary for the fulfillment of its mission, including but not
limited to the acquisition of drugs, therapies, and medical technologies; and
(v) no later than December 31 of each year, the hospital authority files an
annual report with the Virginia Conflict of Interest and Ethics Advisory
Council disclosing each open contract entered into subject to this provision,
the names of the parties to each contract, the date each contract was executed
and its term, the subject of each contractual arrangement, the nature of the
conflict of interest, the hospital authority's employee responsible for
administering each contract, the details of the hospital authority's commitment
or investment of resources or finances for each contract, and any other
information requested by the Virginia Conflict of Interest and Ethics Advisory
Council.
C. Notwithstanding the provisions of subdivisions B 3 and B 4, if the research and development or commercialization of intellectual property or the officer or employee's personal interest in a contract with a business is subject to policies and regulations governing conflicts of interest promulgated by any agency of the United States government, including the adoption of policies requiring the disclosure and management of such conflicts of interest, the policies established by the hospital authority pursuant to such federal requirements shall constitute compliance with subdivisions B 3 and B 4, upon notification by the hospital authority to the Virginia Conflict of Interest and Ethics Advisory Council by January 31 of each year of evidence of its compliance with such federal policies and regulations.
D. The governing body may delegate the authority granted under subdivision B 2 to the president or chief executive officer of hospital authority. If the board elects to delegate such authority, the board shall include this delegation of authority in the formal policy required by clause (iii) of subdivision B 3. In those instances where the board has delegated such authority, on or before December 1 of each year, the president or chief executive officer of the hospital authority shall file a report with the relevant governing body disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest, the hospital authority's employee responsible for administering each contract, the details of the hospital authority's commitment or investment of resources or finances for each contract, the details of how revenues are to be dispersed, and any other information requested by the governing body.